INV4 2b Lon Musky Corp. stock sells today for $50 per share, and the risk-free rate is 5% per year, continuously compounded. Six months from now, the price will be either $60 or $45. Using the...

INV4 2b

Lon Musky Corp. stock sells today for $50 per share, and the risk-free rate is 5% per year, continuously compounded.

Six months from now, the price will be either $60 or $45.

Using the binomial approach, find the value of a European put option with an exercise price of $50.