Question: Use a three-step tree to value a three-month American put option on wheat futures. The current futures price is 380 cents, the strike price is

  1. Use a three-step tree to value a three-month American put option on wheat futures. The current futures price is 380 cents, the strike price is 370 cents, the risk-free rate is 5% per annum, and the volatility is 25% per annum.

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