Consider an american put option on a stock the stock price


Consider an American put option on a stock. The stock price is $10, the strike price is $5, the risk-free rate is 5% per annum, u = 1.05, d = 0.9524, p = 0.5912, and the time to maturity is six months.

Value the option using a one-step tree. [Give your final answer to 2 decimal places.

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Financial Management: Consider an american put option on a stock the stock price
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