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A stock index is currently 1 ,500. Its volatility is 18%. The risk-free rate is 4% per annum (continuously compounded) for all maturities and the

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A stock index is currently 1 ,500. Its volatility 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% Calculate values for u, d, and p when a 6-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

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