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Put option be optimal if the put is americ

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Reference no: EM132116124

If European put price using a two-period binomial model assuming the following data is: S0 = 10, T = 2 months, u = 1.5, d = 0.5, r = 0.05, K = 7.

Would early exercise of the put option be optimal if the put is American? (Please show the calculation and explanation as well) and try to be neat

Reference no: EM132116124

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