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Compute the difference in price of American put option and European put option using 2- step binomial option on a stock that is selling
Compute the difference in price of American put option and European put option using 2- step binomial option on a stock that is selling at $42. The options will expire is 6-months and the risk-free rate is 12%. In each three-months period the price of stock will be either 10% high or 10% low.
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