Question: Given a American put option, use a binomial tree with monthly steps h=1/12 that is step length. Let S(0) =100 (Stock price) K= 110 (Strike

Given a American put option, use a binomial tree with monthly steps h=1/12 that is step length.

Let S(0) =100 (Stock price)

K= 110 (Strike price)

r= 0.03 (Risk free-rate)

T=1 (year)

Volatility= 20%.

Constructing a binomial tree?

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