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consider a 2 year European put with a strike price of $55 on a stock whose current price is $50 we suppose that There are
consider a 2 year European put with a strike price of $55 on a stock whose current price is $50 we suppose that There are two time steps of one year and the each time step the stock either move up by 20% or more down by 20%. We also suppose that the risk free interest rate is 5%
* Determine the put price, using binomial trees.
*Determine also the corresponding price of an American put option with the same structure
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