Question: In a 2-period binomial model, the current underlying stock price is $100, in each period the stock can either go up by 20% or down

In a 2-period binomial model, the current underlying stock price is $100, in each period the stock can either go up by 20% or down by 20%, the risk

free compounding rate in each period is 4%.



 Determine the prices of ATM (at-the-money) American put at each period.

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