Chapter 03 · Section 3.1

The diagram of the evolution

The diagram of the stock price evolution develops in this direction ------>
<--------The diagram of the put value evolution develops in this direction.

What is the price of the put?

a) --999999/-1
b) -0
c) -2.05
d) -0.01/1.85
e) -1.87/99999
• f) +1.86
  Yes. The value is obtained in the following manner: (1/1.1) x {(0.00 x 0.5) + (4.09 x 0.5)} = 1.86. Continue

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