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One-period binomial tree

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Reference no: EM132235128

Price an ATM put option in a one-period binomial tree. The underlying asset, Palladium, is trading for $1,813/unit currently and you project that over the next period it will either go up by 5% or down by 9%. The risk free rate is 3%.

Provide your answer rounded to two decimals.

Reference no: EM132235128

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