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A stock price is currently $ 1 0 0 . Over each of the next 1 - month period, it is expected to go up

A stock price is currently $100. Over each of the next 1-month period, it is expected to go up by 10% or down by 10%. Assuming a 2-month American put written on the stock with a strike price of $101, would it be optimal to exercise it early in one month? What is the price of the American option? Assume the risk-free rate r is 5%.

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