Buffelhead's stock price is $235 and could halve or double in each six-month period (equivalent to a standard deviation of 95%). Assume that you own an American put option on Buffelhead stock with an exercise price of $235. The interest rate is 18% a year. Assume a six-month interest rate of 9.00%

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 $ ______