### Attempting to value a call option with an exercise price

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##### Reference no: EM13765681

You are attempting to value a call option with an exercise price of \$108 and 1 year to expiration. The underlying stock pays no dividends, its current price is \$108, and you believe it has a 50% chance of increasing to \$130 and a 50% chance of decreasing to \$86. The risk-free rate of interest is 10%. Calculate the value of a put option with exercise price \$108. (Round your answer to 2 decimal places. Omit the "\$" sign in your response.)

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