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You are attempting to value a put option with an exercise price of $108 and one...

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Finance

You are attempting to value a put option with an exercise priceof $108 and one year to expiration. The underlying stock pays nodividends, its current price is $108, and you believe it has a 50%chance of increasing to $133 and a 50% chance of decreasing to $83.The risk-free rate of interest is 9%. Calculate the value of a putoption with exercise price $108.

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You are attempting to value a put option with an exercise priceof $108 and one year to expiration. The underlying stock pays nodividends, its current price is $108, and you believe it has a 50%chance of increasing to $133 and a 50% chance of decreasing to $83.The risk-free rate of interest is 9%. Calculate the value of a putoption with exercise price $108.

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