Question: Let S = $75, r = 8% (continuously compounded), d = 5%, s = 40%, T = 2. In this situation, the appropriate values of

Let S = $75, r = 8% (continuously compounded), d = 5%, s = 40%, T = 2. In this situation, the appropriate values of u and d are 1.53726 and 0.69073, respectively. Using a 2-step binomial tree, calculate the value of an $80-strike American put option?

Correct answer is 15.656. Can you show steps how to solve it without excel?

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