In a One-Period Binomial Model with S_u = 49

question 31

Multiple Choice

In a one-period binomial model with S_u = 49.5,S_d = 40.5,p = 0.8,r = 0.06,S = 45 and X = 50,what is a European put worth?

• A)2.17
• B)0.50
• C)9.50
• D)5.00
• E)none of the above

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Definitions:

Counseling Psychologist

A professional who helps people with physical, emotional, and mental health issues improve their sense of well‑being, alleviate distress, and resolve crises.

Clinical Psychologist

A professional specializing in diagnosing, evaluating, and treating mental, emotional, and behavioral disorders through psychological testing, counseling, and therapy.

Developmental Psychologist

A professional who studies the growth and development of the human mind and behavior throughout life.

Empiricism

A philosophical stance emphasizing that knowledge comes primarily from sensory experience.