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A stock priced at 50 can go up or down by 10 percent per period. Assume a two period model. The risk free rate is

A stock priced at 50 can go up or down by 10 percent per period. Assume a two period model. The risk free rate is 4 percent .

A. Based on binomial model, what is the price of an American put with an exercise of 50?

B. Based on binomial model, what is the price of an European put with an exercise of 50?

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