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You are given the following data for an American put option. The put may be exercised at any time (from the time of purchase until
You are given the following data for anAmericanput option. The put may be exercised at any time (from the time of purchase until maturity).Using a1-stepbinomial tree, what is the put's current value?
K
$25.16
T
0.5
S0
$23.35
r
4.5%
u
1.03
d
0.97
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