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A stock price is $10 now. In 1 month it can go to $11 or $9....

A stock price is $10 now. In 1 month it can go to $11 or $9. The annual interest rate is 11% with continuous compounding. Using risk-free portfolios, determine the value of the one-month European put with strike price 10 and with strike price 9.5. And Use risk-neutral valuation to calculate the probabilities that will give you the correct put prices in this problem .Construct trading strategies in stock only that replicate each of the two puts in this problem . That means construct a) synthetic long put strategy with strike price 10. b) synthetic long put strategy with strike price 9.5 .What is the cost of each synthetic trading strategy

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