Question: Problem 2: We analyze a European put option with a two-step binomial tree. Suppose that the stock price starts at $115 in the next two

Problem 2: We analyze a European put option with a two-step binomial tree. Suppose that the stock price starts at $115 in the next two steps that price may go up or down knowing that the volatility of the price of the stock is 20% for each step Each step is 5 months The risk-free interest rate is 3.79% per year a/Find the value of a European put option with a strike price of $117. b/What would be the value of the put option if it were American

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