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The risk free rate is 5%, the price of the underlying stock is $100, the underlying stock can increase or decrease by 20% each six

The risk free rate is 5%, the price of the underlying stock is $100, the underlying stock can increase or decrease by 20% each six months, consider an american put option with a strike price of $120 and a time to expiration of one year. Price this security using the two-period binomial model.

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