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(Solved): You are attempting to value a put option with an exercise price of \( \$ 108 \) and one year to exp ...
You are attempting to value a put option with an exercise price of \( \$ 108 \) and one year to expiration. The underlying stock pays no dividends, its current price is \( \$ 108 \), and you believe it has a \( 50 \% \) chance of increasing to \( \$ 123 \) and a \( 50 \% \) chance of decreasing to \( \$ 93 \). The riskfree rate of interest is \( 5 \% \). Calculate the value of a put option with exercise price \$108. (Do not round intermediate calculations. Round your answer to 2 decimal places.)