Question: Use a four - period binomial model to value an American put option with a $ 3 5 strike price and three months remaining to

Use a four-period binomial model to value an American put option with a $35 strike price and
three months remaining to maturity. The underlying stock does not pay any dividend and is
currently selling for $30 per share. The risk-free rate is 5% per annum, compounded
continuously. The stock return volatility is 40%.
What if the option is European? Use the same binomial tree to value the European put.
Show all calculations at every node of the binomial tree.

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