Question: Consider a binomial tree with u = 1.05 and d = 0.90. Suppose the per-period interest rate is R= 1.02, and the initial stock price

Consider a binomial tree with u = 1.05 and d =

Consider a binomial tree with u = 1.05 and d = 0.90. Suppose the per-period interest rate is R= 1.02, and the initial stock price is $100. The value of an American put option on the stock with a maturity of two periods and a strike price of $95 is: $0.69 $3.54 $2.25 O $1.06

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