A stock has volatility (sigma=.30) and a current value of ($ 36). An American put option on
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A stock has volatility \(\sigma=.30\) and a current value of \(\$ 36\). An American put option on this stock has a strike price of \(\$ 40\), and expiration is in 5 months. The interest rate is \(8 \%\). Find the value of this put using a binomial lattice with 1 -month intervals. Repeat using a lattice with half-month intervals.
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