Question: Using a binomial tree, when calculating the price of a $40 strike 6-month European put option, using 3-month intervals as the time period, what is

Using a binomial tree, when calculating the price of a $40 strike 6-month European put option, using 3-month intervals as the time period, what is the stock price at maturity (at the end of period 2) if the stock price goes up and then up? Assume the following data: S = $35.90, = 0%, r = 5.0%, = 0.35.

Question 21 options:

$55.1442

$53.5437

$52.2342

$57.7632

$38.8594

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