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Fill in all the cells labeled ??? in the following spreadsheet: Why is there no additional pricing tree for an American call option? A B

Fill in all the cells labeled ??? in the following spreadsheet: Why is there no additional pricing tree for an American call option?

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A B H K DIE THREE-DATE BINOMIAL OPTION PRICING 1.35 0.95 state prices qu ad 40 1.25 40 1 2 Up, U 3 Down, D 4 5 Initial stock price 6 Interest rate, R 7 Exercise price 8 9 Stock price 10 11 12 40 13 14 15 16 European call option 17 18 Bond price ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? European put option ??? ??? 19 ??? ??? ??? ??? ??? ??? ??? ?? ??? ??? American put option 20 21 22 23 24 25 26 27 28 29 30 ??? ??? ??? ??? ??? ??? A B H K DIE THREE-DATE BINOMIAL OPTION PRICING 1.35 0.95 state prices qu ad 40 1.25 40 1 2 Up, U 3 Down, D 4 5 Initial stock price 6 Interest rate, R 7 Exercise price 8 9 Stock price 10 11 12 40 13 14 15 16 European call option 17 18 Bond price ??? ??? ??? ??? ??? ??? ??? ??? ??? ??? European put option ??? ??? 19 ??? ??? ??? ??? ??? ??? ??? ?? ??? ??? American put option 20 21 22 23 24 25 26 27 28 29 30

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