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Let S = $75, r = 8% (continuously compounded), d = 5%, s = 40%, T...

Let S = $75, r = 8% (continuously compounded), d = 5%, s = 40%, T = 2. In this situation, the appropriate values of u and d are 1.53726 and 0.69073, respectively. Using a 2-step binomial tree, calculate the value of an $80-strike American put option?

Correct answer is 15.656. Can you show steps how to solve it without excel?

Thank you!

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without excel, it is difficult to show the way, so go through, any doubts , no problem ,we are here to help you

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