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Find the price of two year american put option

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Reference no: EM131114148

A stock price is 80. The price is expected to increase by 20% or decrease by 30% every year. the RFR is 9 per annum with continuous compounding . Using the two-step binomial tree find the price of its two year American put option with a strike price of 75.

Reference no: EM131114148

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