Question: Q6. ( 22 points) For a two-period binomial model, you are given: (i) Each period is one year. (ii) The current price for a non-dividend-paying

Q6. ( 22 points) For a two-period binomial model, you are given: (i) Each period is one year. (ii) The current price for a non-dividend-paying stock is 20 . (iii) u=1.2 and d=0.8. (iv) The continuously compounded risk-free interest rate is 4%. Calculate the price of an American put option on the stock with a strike price of 22

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