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A stock price is currently $50. It is known that at the end of six...

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Finance

A stock price is currently $50. It is known that at the end of six months it will be either $60 or $40. The risk free rate of interest with continuous compounding is 8% per annum. Calculate the value of a six-month European put option on the stock with an exercise price of $52.

A. 4.63

B. 5.33

C. 4.59

D. The put is out of the money and therefore it is worthless

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