Question: Consider a one-period binomial model with h 1, S = 100, r = 0.08, u 1.5, d = 0.8 and 0. Calculate the price of

Consider a one-period binomial model with h 1, S = 100,

Consider a one-period binomial model with h 1, S = 100, r = 0.08, u 1.5, d = 0.8 and 0. Calculate the price of an American put option on this stock with strike price K 100. Does early exercise occur? 3

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