For the american put with the parameters s0100 e120 r005, Ask an Expert

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For the American Put with the parameters S0=100, E=120, r=0.05, expiration in 3 months, use the tree model with dt = 1/12, u=1.1, d=0.9. Calculate the option price and deltas. Generate two random paths through the tree and describe hedging procedure and results.

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Category:- Financial Management
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