Question: Consider a one-period binomial model with h = 1, where S = $100, r = 0 = 30%, and = 0.08. Compute American put option

Consider a one-period binomial model with h = 1, where S = $100, r = 0 = 30%, and = 0.08. Compute American put option prices tor K = $100, $110. $120, and $130. What is the lowest strike price (if there is one) at which early exercise will occur? If early exercise never occurs, explain why not.

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