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Consider the following American put. Underlying stock price = $ 8 0 Exercise price = $ 8 1 Standard deviation = 4 0 % Time

Consider the following American put.
Underlying stock price = $80
Exercise price = $81
Standard deviation =40%
Time to maturity =6 months
Risk-free rate =6%
Using the two-step binomial tree, find the put price. (20 pts)

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