Question: Does anyone know the answer to this question? Given the maturity of an American put option 2 years, riskfree rate 10%, volatility of the stock
Does anyone know the answer to this question?
Given the maturity of an American put option 2 years, riskfree rate 10%, volatility of the stock 40%, current spot price of $50, strike price $50, what is the terminal payoff of the option when the stock price is 69.312 in a 3-step binomial tree?
A) 0
B) 13.391
C) 10.204
D) 31.231
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