Question
Let S = $100, K = $95, r = 8%, T = 1, and = 0. Let u = 1.3, d = 0.8, and n
Let S = $100, K = $95, r = 8%, T = 1, and = 0. Let u = 1.3, d = 0.8, and n = 2 (n refers to the number of binomial periods). Construct the binomial tree for an American put option. At each node provide the premium, , and B.
(Please show detailed working)
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Fundamentals Of Cost Accounting
Authors: William Lanen, Shannon Anderson
2nd Edition
0071332618
