The current price of a stock is $55. Calculate the value of an American put option on the stock using a two-step binomial tree given the following information.
The strike price of the option, K = $57, each time step is one year, the risk-free interest rate,
r = 5%, u =1.25, d = 0.8, and p = 0.6282
Answers: 1
= $0.84656
= $13
= $ 5.95Another question on Business
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The current price of a stock is $55. Calculate the value of an American put option on the stock usin...
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