What is the price of put option with strike price

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Reference no: EM132002255

In the next year, stock A has the probability of 0.3 to go up in value by 15% and the probability of 0.7 to decline in value by 10%. If the stock's current price is $70 and the risk-free rate is 2% per annum, what is the price of a put option with strike price $75 and expiration date a year from now?

Reference no: EM132002255

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