What is value of a put option on one carel industries share

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Question - Carel Industries is an Italian company that organizes trade fairs and is listed on the Milan Stock Exchange. The company's shares are currently trading at €50. Depending on the outlook for the economy and the demand for trade conferences, the company's share price is expected to be either €65 or €30 in six months. The risk-free interest rate is 8 per cent per year. What is the value of a put option on one Carel Industries' share that has a €40 strike price?

Reference no: EM132946903

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