What is the price of a put option expiring in 1 year with a


Suppose the current price of a share in Finney tech. is $50. We know that one year from now the price will be $65 (with probability .7) or $40 (with probability .3). If the risk free rate is 5%, what is the price of a put option expiring in 1 year with a strike price of $55?

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Finance Basics: What is the price of a put option expiring in 1 year with a
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