A stock price is currently 50 it is known that at the end


A stock price is currently $50. It is known that at the end of 6 months it will be either $45 or $55. The risk-free interest rate is 10% per annum with continuous compounding.

What is the value of a 6-month European put option with a strike price of $50?

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Financial Management: A stock price is currently 50 it is known that at the end
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