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Consider a binomial tree with u=1.05 and a=0.90. Suppose the per-period interest rate is R=1.02, and the initial stock price is $100. The value of

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Consider a binomial tree with u=1.05 and a=0.90. Suppose the per-period interest rate is R=1.02, and the initial stock price is $100. The value of an American put option on the stock with a maturity of two periods and a strike price of $95 is: $1.06 $3.54 $2.25 $0.69

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