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Use a 2-step binomial tree to price an american style put optionwhen the current stock price is $50 and the stock price will moveup or down by 20 percent at each time(that is, the ending stockprice are $72,$48, and $32). The strike price on the option is $52and the risk-free interest rate is 5 percent per step. Pleasereport your answer to two decimal places.
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