Question the current price of a non-dividend paying stock, Ask an Expert

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Question: The current price of a non-dividend paying stock is $60 with a volatility of 20%. A six-month put option has a strike price of $55.

A. what is the value of this option using a two step binomial tree and assuming its a European style

B. use a two step tree to value the option but American style.

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Category:- Basic Finance
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