Buffelhead's stock price is $221 and could halve or double in each six-month period (equivalent to a standard deviation of 97%). Assume that you own an American put option on Buffelhead stock with an exercise price of $221. The interest rate is 20% a year.

a.

Would you ever want to exercise an American put early?

	Yes
	No

b.	Calculate the value of the Buffelhead American put. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Value of put

$

c.	Calculate the value of the European put. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Value of put

$