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Determine price of a 3-year european put option

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Determine price of a 3-year European put option with a $30 strike price. The annual discount rate is 3% (compounded annuallu), the current price of the stock underlying the put option is $28, and the stock has an estimated up/down price change of 8% per year. Use the 3 step binomial model.

Reference no: EM132484751

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