The current stock price is $46.57. The stock may increase by 1.13 or decrease by 0.6. One plus the riskfree rate, rf is 1.02. 

Question 12

/ 2 pts

Consider a one period binomial option pricing setting.

The current stock price is $46.57. The stock may increase by 1.13 or decrease by 0.6. One plus the riskfree rate, rf is 1.02.

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What is the initial value of a put option with a strike price of $43?