At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

the price of a stock, which pays no dividends, is $30 today. in one year, the stock price will either be $36 or $24. the strike price of a one year european put option on the stock is $27. the risk-free rate is 4% per year with annual compounding. what is the premium of the put option today?