The possible stock prices of XYZ corporation are:

Year: 0 1 2

S_uu = 70

P_uu =

S_u = 60

P_u =

S =50 S_ud = 50

P = P_ud =

S_d = 40

P_d =

S_dd = 30

P_dd =

The risk-free interest rate is 10% per year and the stock pays no dividends. Consider a European put with an exercise price of $50 and a time to expiration of 2 years. Consider a two-year American put with the same strike. Compute the early exercise premium of the American put