Assume that the stock of Mixtoss, Inc., is currently trading for $18 and will either rise to $30 or fall to $12 in one year. Assume the risk-free rate for one year is 0 percent. What is the value of a put option with a strike price of $15? (Do not round intermediate computations.)
A) $0
B) $2
C) $5
D) $6
Correct Answer:
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