Question: Consider a binomial world in which the current stock price of $70.15 can either go up by 12% or down by 9% per period. The

Consider a binomial world in which the current stock price of $70.15 can either go up by 12% or down by 9% per period. The risk-free rate is 2.5% per period. The stock pays no dividends.

--What is the correct price for a two-period American-style put option on this stock, with a strike price of $65, based on a TWO-PERIOD binomial option-pricing model?

(show intermediate values for maximum partial credit, such as the stock prices at each node in the binomial tree and the put prices at each node in the binomial true, the p parameter, etc)

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