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Business, 20.12.2019 23:31 SupremeNerdx

Let s be the fixed percentage change by which the stock price rises or falls over a given period. derive the formula for the price of a put option using a one-period two-state model. use the model to price a put option on dgm with the same maturity and exercise price as the call option. use the call-put parity to verify the answers for the values of the call and the put.

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