This was the correct answer. price is currently $50. Over each of the next two three- month periods it is expected to go up by 5% or down by 7%. The risk- free interest rate is 9% per annum with continuous compounding. What is the value of a six-month AMERICAN put option with a strike price of $50? Equations you may find helpful: p = (e^(rAt)-d) / (u-d) f = e^(-rAt) * (fu*p + fd*(1-p)) * (required precision 0.01 +/- 0.01) You Answered Correct Answer 0.97 margin of error +/- 0.01