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 = 45.00 Strike Price = 47.50 u = 1.059 d = 1 / 1.059 R = 1.0003 What is the price of the three-day put?