Determine the price of a one-year american-style

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The current price of one share of CP stock is 100. The stock does not pay dividends. The stock's volatility is 30% and the risk-free interest rate is 4%.Using a two-step binomial tree, determine the price of a one-year American-style put option on the stock with a strike price of 102.

Reference no: EM132955699

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