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Approximate prices of American put option with X=20 and American call option with X=20 using 5-step binomial trees. For the estimate of volatility use
Approximate prices of American put option with X=20 and American call option with X=20 using 5-step binomial trees. For the estimate of volatility use implied volatility from part b. Please, provide your u, d, p, stock tree, and option tree.
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To approximate the prices of an American put option and an American call option using a 5step binomial tree we need to make some assumptions and follo...
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
