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= 1. (20 points) Consider a two-step binomial tree model for a non-dividend-paying stock. So 10, u = 1.1, d = 0.9, and we assume

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= 1. (20 points) Consider a two-step binomial tree model for a non-dividend-paying stock. So 10, u = 1.1, d = 0.9, and we assume that p = 0.10 and every time step is 0.5. Evaluate the price of an American put option with strike price K = 9

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