Consider a 6-months put with a strike price of 90 on a stock whose current price is 100. Assume that there are two time steps of 3 month each, and in each time step the stock price either moves up by 10 percent or moves down by 10 percent. The risk free rate is 10 percent per annum. Calculate the American Put (A.P) option price and also European Put (E.P) options and find out the difference between American Put and European Put price (i.e. A.P-E.P). All the numbers should be rounded to two decimals only.

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