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In a One-Period Binomial Model with Su = 49

Question 26

Multiple Choice

In a one-period binomial model with Su = 49.5,Sd = 40.5,p = 0.8,r = 0.06,S = 45 and X = 50,what is a European put worth?

A) 2.17
B) 0.50
C) 9.50
D) 5.00
E) none of the above

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