Triangular File Company's stock price is $220 and could halve or double in each six-month period (equivalent to a standard deviation of 98%). The interest rate is 14.49% a year. Suppose that you own an American put option on Triangular stock with an exercise price of $250.

a. Would you ever want to exercise the put early? b. Calculate the value of the put.

This question has been previously asked, but the answer did not make sense, and was said to be wrong.

This is the second time I have reposted this question, and I am out of time. The assignment has to be done by midnight Central Time.