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Stock Beta has a market price equal to 18 . Its annual volatility is equal to 25% . The risk free interest rate ( continuous

Stock Beta has a market price equal to 18 . Its annual volatility is equal to 25% . The risk free interest rate ( continuous compounding) is equal to 4%. Calculate the premium of an American put option with a maturity of 6 months and a strike price equal to 18 euro using a two step binomial tree.

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