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The shares of JPM are currently trading at $115. Assume the yearly volatility of JPM is such that every quarter the stock can move by

The shares of JPM are currently trading at $115. Assume the yearly volatility of JPM is such that every quarter the stock can move by a factor of 1.2 (up) or 0.82 (down). The annualized risk-free rate is 2%. Say that JPM pays a dividend of $10 in 3 months and another one in 6 months. Using a three-step binomial tree approach obtain the prices of the following options with 9 months to maturity and strike price equal to $110.

1) American call option

2) American put option

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