Question: Use a 3-step binomial tree to value a European put option. Draw the tree. The option expires in 6 months. The interest rate is 10%

Use a 3-step binomial tree to value a European put option. Draw the tree. The option expires in 6 months. The interest rate is 10% annually continuously compounded. The spot price is at 100. U= 1.2 and D = 0.8. The strike price of this option is 95. Show all of your calculations.

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