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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.


Definitions:

Physical Attractiveness Stereotype

The assumption that individuals who are deemed physically attractive also possess other desirable traits, such as intelligence and kindness.

Positive Qualities

Favorable attributes or characteristics that individuals possess, contributing to their overall personality and interactions with others.

Negative Qualities

Traits or characteristics that are viewed unfavorably or as hindrances to success, personal growth, or social acceptance.

Physical Attractiveness

The degree to which a person's physical traits are considered aesthetically pleasing or beautiful by others.

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