Question: Use the same inputs as in the previous (first) question, except that K=$1.00. (a) What is the price of a 9-month European put? (b) What
Use the same inputs as in the previous (first) question, except that K=$1.00. (a) What is the price of a 9-month European put? (b) What is the price of a 9-month American put? Suppose that the exchange rate is $0.92/. Let r=4%, and r=3%,u=1.2,d=0.9,T=0.75, number of binomial periods =3, and K=$0.85. Use Binomial Option pricing to answer the following two questions
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