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22. Suppose Benjamin paid a premium of $1.15 for a put option on Plakeda Pharmaceutical Co Ltd stock, with an exercise price

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Answer #1

1.
=Exercise Price-Premium Paid
=46-1.15=44.85

2.
=((1+rate for 5 years)^5/(1+rate for 2 years)^2)^(1/3)-1
=(1.09^5/1.014^2)^(1/3)-1
=14.38%

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