Calculate the price for the put option matures

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The stock price for Lawrence Corp. today is $20 and in each period the stock price goes up by 6% or down by 3% from what it was in the previous period. When the one-period interest rate is 1%, calculate the price for the put option (underlying asset: Lawrence Corp. stocks) matures at date 2 and has exercise price X = $22 by using binomial pricing model.

Reference no: EM131057794

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