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13 Marks American options can be valued using a binomial tree by: O a. Checking whether early exercise is optimal at all nodes (except for
13
Marks American options can be valued using a binomial tree by: O a. Checking whether early exercise is optimal at all nodes (except for the final nodes) where the option is in the money O b. Checking whether early exercise is optimal at the finai nodes. Oc. Checking whether early exercise is optimal at the final nodes and the nodes one time step before that. od. Increasing the number of time steps on the tree. Unsure Step by Step Solution
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