Question: American option example Consider the following model for a stock S denominated in GBP, where r = 0, and a dividend of 2 is paid

American option example Consider the following model for a stock S denominated in GBP, where r = 0, and a dividend of 2 is paid at time 1.5:

S(0,w) S(1,w) S(2,w)
w1 12 16 20
w2 12 16 10
w3 12 8 10
w4 12 8 4

Construct a trading strategy for the portfolio.

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