We are in the process of valuing an American put option. It has a strike price of $40 and expires after 6 month The following diagram shows a 2-step Binomial tree modelling share price movements over the 6 monthlife of this put option, Rey details are: The proportional up and down ("d") movement on this tree ure 1.1052 and 0.9048 respectively The branch length ("81") i 0.25 The miktree interest rate is o per annum continuously compounded S, $36,64 PS3.36 S $33.16 P? 1 S. - 530 S, $30,00 P = $10.00 2 S=527.15 P = ? S $24.56 P = $15.44 Time 0.5 Timeo Time 0.25 On the upper right brainch labelled with a big number 1, the value of the put option is On the watch labeled with a big number 2 The value of the pul option is We are in the process of valuing an American put option. It has a strike price of $40 and expires after 6 month The following diagram shows a 2-step Binomial tree modelling share price movements over the 6 monthlife of this put option, Rey details are: The proportional up and down ("d") movement on this tree ure 1.1052 and 0.9048 respectively The branch length ("81") i 0.25 The miktree interest rate is o per annum continuously compounded S, $36,64 PS3.36 S $33.16 P? 1 S. - 530 S, $30,00 P = $10.00 2 S=527.15 P = ? S $24.56 P = $15.44 Time 0.5 Timeo Time 0.25 On the upper right brainch labelled with a big number 1, the value of the put option is On the watch labeled with a big number 2 The value of the pul option is