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please dont use excel (15 pts) In a 2-steps Binomial Tree model with U = 0.1, D = -0.1, R = 0.03, the stock price
please dont use excel
(15 pts) In a 2-steps Binomial Tree model with U = 0.1, D = -0.1, R = 0.03, the stock price today is S(0) = 72. (8a). (5 pts) Draw the tree of stock prices. (8b). (10 pts) Calculate the price of an American put with strike price K 80 with maturity time T = 2 and find out all nodes of the tree at which we early exercise the American put option. =Step by Step Solution
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