Question: Let S(0) = 50, R = 0.5%, U = 10%, K = 51 and D = 10%. Assume that the stock price follows a binomial

Let S(0) = 50, R = 0.5%, U = 10%, K = 51 and D = 10%. Assume that the stock price follows a binomial model with N = 2. Find the price P(0) of an European exotic put option with the payoff

P(2) = [K - S(2)+$(1)+S(0)+. P(2) = [K - S(2)+$(1)+S(0)+

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