Using two period binomial model

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Twitter is currently trading for $38.37, has a u of 1.08, a d of .9, and the riskfree rate is 2.5%. Using a two period binomial model, what is the price of an American put option with a strike price of $41? If you wrote that option, what would you need to do to hedge your risk?

Reference no: EM131562439

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