Question: For problems 11 and 12, suppose that S = $50, K = $51, 0 = 0.25, r = 0.08, 0 = 0, and T =

For problems 11 and 12, suppose that S = $50, K = $51, 0 = 0.25, r = 0.08, 0 = 0, and T = 1 year. Assume a binomial model of stock price using 2 periods. Consider stock price averages, computed by averaging the 6 month and 1 year prices. 11. What is the price of an Asian arithmetic average price put? 12. What is the price of an Asian arithmetic average strike put? For problems 11 and 12, suppose that S = $50, K = $51, 0 = 0.25, r = 0.08, 0 = 0, and T = 1 year. Assume a binomial model of stock price using 2 periods. Consider stock price averages, computed by averaging the 6 month and 1 year prices. 11. What is the price of an Asian arithmetic average price put? 12. What is the price of an Asian arithmetic average strike put

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