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2. Suppose we have a two-step binomial tree for which S0=100 and at each step the stock price either increases by 25% or decreases by

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2. Suppose we have a two-step binomial tree for which S0=100 and at each step the stock price either increases by 25% or decreases by 15%. Also suppose that the interest rate r=4%. Analyze the price P105A(0,2) of an American put option using dynamic programming. Show all of your steps

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