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Consider a 3 - month American put option on a non - dividend - paying stock when the stock price is $ 1 0 0
Consider a month American put option on a nondividendpaying stock when the stock price is $ the strike price is $ the riskfree interest rate is per annum, and the volatility is per annum. Suppose that we divide the life of the option into three intervals of length month for the purposes of constructing a binomial tree. Determine the price of this put option today using binomial approach
Consider a month American put option on a nondividendpaying stock when the stock
price is $ the strike price is $ the riskfree interest rate is per annum, and the
volatility is per annum. Suppose that we divide the life of the option into three intervals
of length month for the purposes of constructing a binomial tree. Determine the price of this
put option today using binomial approach
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