What would be the value of a put option on a stock with a


What would be the value of a put option on a stock with a strike price of $50 and expiring in half a year, if today’s stock price is $40, risk-free rate is 1%, the expected volatility is 50% and the stock does not pay a dividend. Value the put option using the Black-Scholes formula. For the cumulative normal table, use the number in the table that is closest to your calculated value. Show all your work.

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Financial Management: What would be the value of a put option on a stock with a
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