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The stock price of Algama Ltd. is trading at 52D per share and the company.r does not pay dividend. In each of the following two

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The stock price of Algama Ltd. is trading at 52D per share and the company.r does not pay dividend. In each of the following two years, the stock price will either go up or go down by 25% with equai probability. The risk-free continuously compounding annual interest rate is 5%. Using the binomial option pricing model, what is the price of an American put option with strike price of 52d and with two years to expiration

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