JC 18) The stocks price S is $100 After three months, it either goes up and gets multiplied with the up factor U = 1.1282, or it goes down and gets multiplied with the down factor D = 0.9224 Options mature after T = 1 year Options have a strike price of K = $110 A dollar invested in the money market account grows to $1.0253 after six months (corresponding to an annual compounded interest rate of 5%) The price tree of the european put options is:

0 2.8942 8.7508 5.9345 15.0494 24.9246

(a) Find the price tree for an American put option