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In the Binomial Option Pricing Model, compare the price of an American Put and a European put price using the same 5 step tree with
In the Binomial Option Pricing Model, compare the price of an American Put and a European put price using the same 5 step tree with 3 months to maturity and a sigma of 23%. Let the starting futures price be 72, the strike be 75 and let r = 5%.
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