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Let K = 95, = 0.3, r = 0.08, T = 1 and = 0. Let u = 1.3, d = 0.8, and n =

Let K = 95, = 0.3, r = 0.08, T = 1 and = 0. Let u = 1.3, d = 0.8, and n = 2. Construct the binomial tree for a put option for S = 80, 110, and 130. At each node provide the premium, , and B. What happens to the initial put as the stock price increase?

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