Consider a binomial world in which the current stock price of 100 can either go up by 10 percent or down by 10 percent. The risk-free rate is 4…

Consider a binomial world in which the current stock price of 100 can either go up by 10 percent or down by 10 percent.  The risk-free rate is 4 percent.  Assume a two-period world.  What is the theoretical value of the European put with an exercise price of 100?

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