Compute the price of an american call option with strike

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Problem 1: Compute the price of an American call option with strike K=110and maturity T=.25 years.

Problem 2: Compute the price of an American put option with strike K = 110 and maturity T = .25 years

Problem 3: Is it ever optimal to early exercise the put option of Question 2?

Problem 4: If your answer to Question 3 is "Yes", when is the earliest period at which it might be optimal to early exercise?

Reference no: EM132935668

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