Question: Consider a binomial model with u=1.02, d=100/102, delta=0, and interest rate r of 5% a year, compounded continuously. Using T=1 maturity of one year. initial

Consider a binomial model with u=1.02, d=100/102, delta=0, and interest rate r of 5% a year, compounded continuously. Using T=1 maturity of one year. initial stock price S(0) = 100 and N=4 periods, find the premium of the EUROPEAN PUT P^E(K) for K = 100, 103, 106, 109.

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