Multiple Choice
A stock priced at 50 can go up or down by 10 percent over two periods.The risk-free rate is 4 percent.Which of the following is the correct price of an American put with an exercise price of 55?
A) 7.88
B) 3.38
C) 4.00
D) 5.00
E) 1.65
Correct Answer:
Verified
Correct Answer:
Verified
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