Not yet ansered Marked out of 10.00 Flag cuestion A stock price is currently $20 Over each of the next two three-month periods it is expected to go up by 10% or down by 10% The risk-free interest rate is 2% per annum with continuous compounding Use the binomial tree pricing approach to estimate the value of a six-month American put option with a strike price of $21. The figure below shows the tree to evaluate the option value At each note the upper number (S1-56) is the stock price, the lower number (P1-P6) is the Artencan put price The value of 51 52 and 53 are $20, $22 and $18 respectively, S4 P4 S2 P2 S1 P1 S5 P5 S3 P3 S6 P6 Write your answer to TWO (2) decimal places, eg 1.00, 221 The nisk neutral probability of an up move (p) is [1 mark) 222 The value of S4 is dollars. I mark) 223 The value of S5 is dollars. Il mark 22.4 The value of S6 is dollars. It mark] 225 The value of P4 is dollars. [1 mark) 22.6 The value of PS is dollars. [1 mark) 22.7 The value of Pais dollars. Il mark] 22.8 The value of P2 is dollars. Il mark] 229 The value of P3 is dollars. 1 mark] 22 10 The value of Plis dollars. [1 mark] [Total: 10 marks