Question: The first sheet / image is my class example the second sheet / image is my assignment I need help finding these values So =
The first sheetimage is my class example
the second sheet image is my assignment
I need help finding these values
So
U
D
X
R
T
all info is provided
my case:
Consider a stock which is currently selling for $ Construct a twostep binomial tree,
month and months respectively for each of the two steps. The stock market volatility is
the rate of interest is assumed to be and the exercise price is $
i Calculate the price of an American Put.
ii Provide a graphical illustration to demonstrate how the put price and the put payoff
change with respect to changes in the stock price.
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