Consider the following American put. Underlying stock price = $ 8 0 Exercise price = $ 8

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Question:

Consider the following American put.

Underlying stock price

=

80

Exercise price

=

81

Standard deviation

= 40 %

Time to maturity

= 6

months

Risk

-

free rate

= 6 %

Using the two

-

step binomial tree, find the put price.

(20

pts

)

Posted Date: May 18, 2024 05:11 PM

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Consider the following American put. Underlying stock price = $ 8 0 Exercise price = $ 8

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