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 the end of period 1 (in 3 month) if the stock price goes down? Assume the following data: S = $37.90, = 0%, r = 5.0%, = 0.35.

Question 20 options: $32.2156 $31.2806 $30.5156 $33.7456 $55.1442

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