What is the price of an american put with a strike price


Problem

A stock selling at $80 will either go up at the rate of u=10% or down at the rate of d=-10% each month for the next two months. The constant risk-free rate is 1% per month. The stock will pay a dividend of $5 next month.

What is the price of an American PUT with a strike price of $75 and a maturity of two months?

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Financial Management: What is the price of an american put with a strike price
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