Answer to Question #220028 in Finance for Roli favor

Question #220028
Find the current price of a one-year, R110-strike American put option on a non-
dividend-paying stock whose current price is S(0) = 100. Assume that the continuously compounded interest rate equals r = 0.06. Use a two-period Binomial tree with
u = 1.23, and d = 0.86 to calculate the price VP(0) of the put option.
1
Expert's answer
2021-07-27T02:15:01-0400

OP of put today



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