An option trader is pricing options with three days to expir…
An option trader is pricing options with three days to expiration with a three-period BINOM. The find the following data and make the following parameter estimates: Spot Price = 13.50 Strike Price = 15.00 u = 1.044 d = 1 / 1.044 R = 1.0003 What is the price of the three-day put?