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Use the following information to respond to problems 1 & 2: S0 =$40; =40%; r=0.03; D=$0; T=1. Find the value of an American put option

Use the following information to respond to problems 1 & 2:

S0 =$40; =40%; r=0.03; D=$0; T=1.

Find the value of an American put option with a strike price of $50 using a three-step Binomial model.

Find the value of an American call option with a strike price of $45 using a two-step binomial model.

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