6. Suppose you want to price an American style put option for a stock being...

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6. Suppose you want to price an American style put option for a stock being traded on the Dryfontein Stock Exchange having the following parameters: s=18,t=0.25,K=20,= 0.2 and r=0.07. Using n=5, calculate the value of V2(2). Provide all necessary details. [7]

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