Considering ALIBABA corporation which the stock price of no-dividend paying is currently trading at USD 30, and its annual price volatility is 30%. The continuously compounding risktree interest rate is 5%per year. A financial risk manager is considering a two-step binomial tree for a 2-year horizon. What is the price of the American put option with the strike price of USD 33?
Considering ALIBABA corporation which the stock price of no-dividend paying is currently trading at USD 30, and its annual price volatility is 30%. The continuously compounding risktree interest rate is 5%per year. A financial risk manager is considering a two-step binomial tree for a 2-year horizon. What is the price of the American put option with the strike price of USD 33? A.5.7042; B.$4.9537; C.$2.5706; D.$4.6698