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 put stock price increases?...


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,



May 05, 2022
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