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The price of a stock is $100 today. After every 3 months, it can either go up by a factor U = 1.1385 or go
The price of a stock is $100 today. After every 3 months, it can either go up by a factor U = 1.1385 or go down by a factor D = 0.8866. Consider an American put with a strike price of $105 and time to maturity of 6 months. Build a two-period binomial tree to find the price of the American put. The price of the American put is: Select one: O A. $9.95 O B. $10.25 O C. $10.85 O D. $8.25 O E. $9.05 Not The price of a stock is $100 today. After every 3 months, it can either go up by a factor U = 1.1385 or go down by a factor D = 0.8866. Consider an American put with a strike price of $105 and time to maturity of 6 months. Build a two-period binomial tree to find the price of the American put. The price of the American put is: Select one: O A. $9.95 O B. $10.25 O C. $10.85 O D. $8.25 O E. $9.05 Not
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