Question: Exercise 2.3. For the American Put with the parameters So = 100, E = 120, r = 0.05, expiration in 3 months, use the tree

Exercise 2.3. For the American Put with the parameters So =

Exercise 2.3. For the American Put with the parameters So = 100, E = 120, r = 0.05, expiration in 3 months, use the tree model with At = 1/12, u = 1.1, d = 0.9. Calculate the option price and deltas. Consider the price path: Up, Down, Up and describe hedging procedure for a written put and its results

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