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American Put Option Pricing Methods by aqszaqsz is a document available to read on EtoBox.
This document summarizes a lecture on pricing American put options using a binomial tree model. It begins by defining American options and how they can be exercised at any time prior to expiration. It then outlines how to price American put options on a binomial tree by taking the maximum of the option payoff and risk-neutral expected value at each node. An example is provided to demonstrate pricing a two-period American put option. The document also discusses replicating portfolios to price European call o
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