Question: Using a binomial tree, what is the price of a $40 strike 6-month put op- tion, using 3-month intervals as the time period? Assume the

Using a binomial tree, what is the price of a $40 strike 6-month put op- tion, using 3-month intervals as the time period? Assume the following data: S = 37:90; r = 0:05; = 32:1% (a) 3.52 (b) 3.66 (c) 3.84 (d) 3.91

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