The current price of the stock is 130 the price volatility


A European put option on a stock has a strike price $247 and expires in eight months. The annual continuously compounded risk-free rate is 7% and the compounded continuously dividend yield is 2%. The current price of the stock is $130. The price volatility is 35%. Use a 8-period binomial model to find the price of the put. Hint: Put-call parity and the previous problem.

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Financial Management: The current price of the stock is 130 the price volatility
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