2. A stock index is currently 1,500 . Its volatility (ctandard deviation) is 18%. The risk-free rate is 496 per annum (contintwously compounded) for all maturities and the dividend vield on the index is 2.5% per ansum. Calculate values for u,d, avid p when a six-month time step is ured. What is the value a 12-month American put option with a atrike price of 1,480 given by a two step binomial tree. A stock index is currently 1,500 . Its volatility (standard deviation) is 18%. The risk-free rate is 4% per annum (continuously compounded) for all maturities and the dividend yield on the index is 2.5% per annum. Calculate values for u,d, and p when a six-month time step is used. What is the value a 12-month American put option with a strike price of 1,480 given by a two-step binomial tree