Question: 3. Five Step Binomial Tree: Consider again the stock described in the as- sumption above. (Keep at least 4 decimals in all your calculations below.)

3. Five Step Binomial Tree: Consider again the stock described in the as- sumption above. (Keep at least 4 decimals in all your calculations below.)

(a) Construct a nine month long five-step Binomial tree for the stock.

(b) Use your stock tree in exercise (a) to calculate today's price of of an at-the-money European put option with nine months left to maturity.

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