Question

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

Consider an American put option and European put option with strike price x=60 dollars expiring at time 3 on a stock with initial price s(0)=60 dollars in a binomial model with u=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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