Question: Problem 19.8 t You are given the following information about American options: .The current price for a non-dividend paying stock is 72 .The strike price

Problem 19.8 t You are given the following information about American options: .The current price for a non-dividend paying stock is 72 .The strike price is 80 The continuously-compounded risk-free rate is 5% Time to expiration is one year Every six months, the stock price either increases by 25% or decreases by Using a two-period binomial tree, calculate the price of an American put option

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