Question: 2. Let S = $100, K = $95, 30%, r = 8%, T = 1, = 0 and u = 1.3, d 0.8. n =

2. Let S = $100, K = $95, 30%, r =

2. Let S = $100, K = $95, 30%, r = 8%, T = 1, = 0 and u = 1.3, d 0.8. n = 2, a Construct the binomial tree for an American put option. b At each node provide the premium, and B 2. Let S = $100, K = $95, 30%, r = 8%, T = 1, = 0 and u = 1.3, d 0.8. n = 2, a Construct the binomial tree for an American put option. b At each node provide the premium, and B

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