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Valuing a European put and an American put option using the two-period binomial model, suppose you are given the following information: S0 = 26, X

Valuing a European put and an American put option using the two-period binomial model, suppose you are given the following information: S0 = 26, X = 25, u = 1.466, d = 0.656, n = 2 (time steps), Rf = 2.05% (per period), and no dividends. a. What is the value of a European put? b. What is the value of an American put? c. What is the exercise premium of the American put?

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