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Using a 4-step binomial tree price an Asian Average Price Put with a strike of $22 using arithmetic average quarterly. The put has a life
Using a 4-step binomial tree price an Asian Average Price Put with a strike of $22 using arithmetic average quarterly. The put has a life of one year and the stock is currently selling for $20 with a volatility of 34%. The 1-year risk-free rate is 2% with continuous compounding.
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