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A Vanilla American put with strike price $26.00, the underlying asset S (0) is $26 and the return over each period R=1.06. CRR notation d=0.8
A Vanilla American put with strike price $26.00, the underlying asset S (0) is $26 and the return over each period R=1.06. CRR notation d=0.8 and u=1.25 Construct a three-step binomial pricing tree for both the Vanilla American put options and calculate the premium. Please Show all working
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The Economics Of Money Banking And Finance
Authors: Keith Bain, Peter Howells
1st Edition
0582278007, 9780582278004
