Repeat the option price calculation in the previous question for stock prices of $80, $90, $110, $120, and $130, keeping everything else fixed. What happens to the initial putstock price increases?
Let = $100,= $95, = 30%,= 8%,= 1, and = 0. Let = 1.3, = 0.8, and = 2. Construct the binomial tree for an American put option. At each node provide the premium,
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