Question: Let S = $70, r = 7% (continuously compounded), d = 3%, s = 30%, T = 2. Inthis situation, the appropriate values of u

Let S = $70, r = 7% (continuously compounded), d = 3%, s = 30%, T = 2. Inthis situation, the appropriate values of u and d are 1.40495 and 0.77105,respectively. Using a 2-step binomial tree, calculate the value of a $75-strikeAmerican put option.

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