A 9-month American put option on a non-dividend-paying stock has a strike price of $49. The stock
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A 9-month American put option on a non-dividend-paying stock has a strike price of $49. The stock price is $50, the risk-free rate is 5% per annum, and the volatility is 30% per annum. Use a three-step binomial tree to calculate the option price.
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