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5. Consider a stock currently priced at $40. Assume that in each period of one month, the stock could either appreciate or depreciate by 10%.

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5. Consider a stock currently priced at $40. Assume that in each period of one month, the stock could either appreciate or depreciate by 10%. The risk-free rate is 2% per annum. What would be the value of a 3-month American lookback option on the minimum of this stock? 5. Consider a stock currently priced at $40. Assume that in each period of one month, the stock could either appreciate or depreciate by 10%. The risk-free rate is 2% per annum. What would be the value of a 3-month American lookback option on the minimum of this stock

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