European put option on non-dividend-paying stock

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Reference no: EM131072083

Consider a 3-month European put option on a non-dividend-paying stock, where the stock price is $70, the strike price is $70, the risk-free rate is 3% per annum. Stock price will either move up by 10% or down by 5%, every month. Price the put with binomial trees.

Reference no: EM131072083

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