Please do not use Excel and clearly label the steps :) thanks in
advance
- A stock price is currently 500 SEK. It is known that at the end
of six months it will be either 450 SEK or 550 SEK. The risk-free
interest rate is 10% per annum with continuous compounding. What is
the value of a six-month European put option on this stock that has
a strike price of 500 SEK?