For the Same Problem in the Preceding Two Questions,find the State

question 23

Multiple Choice

For the same problem in the preceding two questions,find the state price at the middle node after two periods,given that the 117.3008--strike call is priced at $4 and the 85.2509--strike put is priced at $4,both options of two-months maturity.Assume that the middle node after two periods has the same stock price as the initial stock price.

• A)0.5016
• B)0.5023
• C)0.5044
• D)0.5117

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Definitions:

Net Loss

Net loss occurs when a company's expenses exceed its revenues during a specific accounting period, indicating financial loss.

Adjustments Columns

Columns in accounting journals or ledgers used to make corrections or modifications to financial entries for accurate reporting.

Total Credits

The aggregate amount of credit entries made in an account or a financial statement.

Total Debits

The sum total of all debit entries made in a company's accounting ledger during a specific period.