Question: Problem 2 (12 points): Consider a stock with a current price S=200 and a standard deviation of annual returns o=30%. Consider a 1-year European put

Problem 2 (12 points): Consider a stock with a current price S=200 and a standard deviation of annual returns o=30%. Consider a 1-year

Problem 2 (12 points): Consider a stock with a current price S=200 and a standard deviation of annual returns o=30%. Consider a 1-year European put option on this stock with a strike price of $200. The risk-free interest rate is 8%, and the stock does not pay any dividends Problem 3 (4 points): Consider the same stock as in problem 2 but now consider a 1-year American put option on this stock with a strike price of $200. The risk-free interest rate is 8%. Using Excel, find the value of this option using the Cox-Ross-Rubenstein 10-step binomial option pricing model. Problem 2 (12 points): Consider a stock with a current price S=200 and a standard deviation of annual returns o=30%. Consider a 1-year European put option on this stock with a strike price of $200. The risk-free interest rate is 8%, and the stock does not pay any dividends Problem 3 (4 points): Consider the same stock as in problem 2 but now consider a 1-year American put option on this stock with a strike price of $200. The risk-free interest rate is 8%. Using Excel, find the value of this option using the Cox-Ross-Rubenstein 10-step binomial option pricing model

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