Assume the Following Data on a 6-Month Put Option, Using

question 1

Multiple Choice

Assume the following data on a 6-month put option, using 3-month intervals as the time period. K = $40.00, S = $37.90, r = 5.0%, = .35. What is the binomial option price?

• A) $ 2.10
• B) $ 2.86
• C) $ 3.91
• D) $ 4.25

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