Question: A stock has volatility per year = 0.30 and a current value of $36. A European put option on this stock has a strike price

A stock has volatility per year = 0.30 and a current value of $36. A European put option on this stock has a strike price of $40 and expiration is in 5 months. The interest rate is an APR of 8% compounded monthly. (a) Find the value of this put using a binomial model with 1-month intervals. (b) What if the option is an American put with the same parameters

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