What is value of a european put option with a strike price, Finance Basics

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What is value of a european put option with a strike price

Asignment:

A stock price is currently $40. Over each of the next two three-month periods it is expected to go up by 10% or down by 10%. The risk-free interest rate is 12% per annum with continuous compounding.

a. What it the value of a six-month European put option with a strike price of $42?

b. What is the value of a six-month American put option with a strike price of $42?

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