Consider a stock which is currently selling for $50. Construct atwo-step binomial tree, 1-month and 2-months respectively for eachof the two steps. The stock market volatility is 30%, the rate ofinterest is assumed to be 5% and the exercise price is $52.
(i) Calculate the price of an American Put.
(ii) Provide a graphical illustration to demonstrate how the putprice and the put payoff change with respect to changes in thestock price.
(iii) Put all in an excel format
