Answer:
the value of the put option is $52.18
Explanation:
The computation of the value of the put option is shown below:
Given that
Strike price = $55
Maturity (t) = 9 months or 0.75 per year
Risk free rate (r) = 7.0% or 0.07
Based on the above information
Value of the put option = Strike price × e^-(r)(t)
= $55 × e^-(0.07)(0.75)
= $55 × e^-0.0525
= $52.18
Hence, the value of the put option is $52.18
