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1 Use a two-step binomial tree to compute the value of an American put option that will expire in 8 months. Use the following data:

Use a two-step binomial tree to compute the value of an American put option that will expire in 8 months. Use the following data: S = 75, u = 1.2, d=0.8, K = 75, and the interest rate based on continuous compounding is 8%

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