Find the price of American call and put options. Is it ever worthwhile to exercise early?

2. Consider applying the binomial method to price American options. Suppose that stock in the MAGA Hat Company is priced at S0=100 and consider options that are at the money K=100. The options mature in T=1 year, which we divide into n=3 periods, each of length t=nT=31. The risk-free rate is r=0.03 and MAGA stock has a volatility of =0.6. 2. Consider applying the binomial method to price American options. Suppose that stock in the MAGA Hat Company is priced at S0=100 and consider options that are at the money K=100. The options mature in T=1 year, which we divide into n=3 periods, each of length t=nT=31. The risk-free rate is r=0.03 and MAGA stock has a volatility of =0.6