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blondinia [14]
3 years ago
13

The price of a stock today is $100. next year, the stock price will be either $120 or $90. the risk-free rate is 3% per year. wh

at the the price of a put option with strike price $98
a. the put option price is $4.00
b. the put option price is $4.23
c. the put option price is $4.40
d. not enough information to tell
Business
1 answer:
fredd [130]3 years ago
5 0
A. The put option price is $4.00
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Answer:

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Explanation:

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You can solve for NPV using financial calculator with the following inputs;

CF0= -17,550

C01 = 2,650

F01 (Frequency) = 19

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