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What is the payoff option at node d

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Question - As a financial analyst at jp morgan chase, you are apply to step bonomial model to value a six-month European put option with the strike price of $71.

A stock price is currently $70 (at node A). 

Over each of the next two three-month periods it is expected to go p by 6% or down by 5%. 

The risk-free interest rate is 5% per annum with continuous compounding and You want to find the answers to the following questions:

What is the stock value at Node B?

What is the stock value at Node D?

What is the stock value at node E?

What is the payoff option at node D?

What is the option payoff at node E?

What is the option payoff at node f?

What is the option value at node B?

What is the option value at node A?

Reference no: EM133135128

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