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Consider an American put option and European put option with strike price x=60 dollars expiring...

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Accounting

Consider an American put option and European put option with strike price x=60 dollars expiring at time s on a stock with initial price s(0)=60 dollars in a binomial

model with w=0.2, d=-0.08, r=0.04.

a) Find the European put price

b) Find the American put price

c) Compare your observations

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