Calculate the value of the american and european put

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Reference no: EM13768277

Buffelhead's stock price is $234 and could halve or double in each six-month period (equivalent to a standard deviation of 96%). Assume that you own an American put option on Buffelhead stock with an exercise price of $234. The interest rate is 19% a year.

Calculate the value of the American and European Put

American Put

European Value of Put

Reference no: EM13768277

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