Question: GRAPH HELP I HAVE DONE EVERYTHING ELSE BUT I DONT THINK THE GRAPH IS RIGHT PLEASE DEAR GOD HELP ME Consider a stock which is

GRAPH HELP
I HAVE DONE EVERYTHING ELSE BUT I DONT THINK THE GRAPH IS RIGHT PLEASE DEAR GOD HELP ME
Consider a stock which is currently selling for $50. Construct a two-step binomial tree, 1-month and 2-months respectively for each of the two steps. The stock market volatility is 30%, the rate of interest is assumed to be 5% and the exercise price is $52.(i) Calculate the price of an American Put. (50)(ii) Provide a graphical illustration to demonstrate how the put price and the put payoff change with respect to changes in the stock price. (50) So=50 U=1.090 u=e^0^(')//T D=0.917 d=1//u X=52 R=0.05 T=0.0830.1666670^(')=0.3 p=0.502533 p=(Soe^rt - So d)/So(u-d)1-p =0.4974671-p Binomial Tree illustration 1 month 2 months 59.43443054.510.991 Price of American Put =3.537503.537502 Exercize is optimal 45.866.1442.063169.9368425.924
GRAPH HELP I HAVE DONE EVERYTHING ELSE BUT I DONT

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