Question: Consider a two-period binomial model with u = 1.10 and d = 0.90 and R = 1.07. Suppose the initial stock price is 100 and

Consider a two-period binomial model with u = 1.10 and d = 0.90 and R = 1.07. Suppose the initial stock price is 100 and no dividends are paid. What is the early-exercise premium of a two-period American put option with a strike price of K = 95?

Group of answer choices

$ 2.43

$ 1.43

$ 0

$ 0.43

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