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Find the value of an american put that will expire

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Reference no: EM133005001

A stock is trading for $95, the strike price is $102, u = 1.05, d = .9, and the risk-free rate based on continuous compounding is 15%. Use a one period binomial model to:

Find the value of an American put that will expire in 3 months.

Please explain your reasoning for whether the put should be exercised early or not.

Reference no: EM133005001

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