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III}. Using a binomial tree, what is the price of a $40 strike month put option, using 3 month intervals as the time period? Assume

III}. Using a binomial tree, what is the price of a $40 strike month put option, using 3 month intervals as the time period? Assume the following data: 5 = $319D, r = 5.0%, 0': 0.35 {a} $3.52 {b} $3.66 {-2) $3.34 {ct} $3.91 Answer: D

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