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Consider a European put option on a share with a strike price of $2.1 and time to expiration of 3 months. The current price is

Consider a European put option on a share with a strike price of $2.1 and time to expiration of 3 months. The current price is $2 and the volatility is 10% p.a. The riskfree interest rate is 8% p.a.

Compute the option price using a three-step binomial option pricing model.

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