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?

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04-11-2022
Business

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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?

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