Use the Information for the Question(s)below

question 6

Essay

Use the information for the question(s)below.
The current price of Kinston Corporation stock is $10.In each of the next two years,this stock price can either go up by $3.00 or go down by $2.00.Kinston stock pays no dividends.The one-year risk-free interest rate is 5% and will remain constant.
-Using the binomial pricing model,calculate the price of a two-year put option on Kinston stock with a strike price of $9.

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Definitions:

Perceived Behavioral Control

A concept within the Theory of Planned Behavior that reflects an individual's belief in their ability to control their behaviors.

Self-Efficacy

The conviction a person holds about their ability to undertake behaviors that result in specific achievements.

Transtheoretical Model

A theory of behavioral change that assesses an individual's readiness to act on a new healthier behavior and provides strategies to guide the individual through the stages of change.

Health-Related Model

A framework or theory that outlines the impact of health behaviors, decisions, and environmental factors on an individual's well-being and health outcomes.