Pricing an American Put Option With no Transaction Cost and no

Dividend Payment By Binomial Tree Model

Input
Number of Nodes (<201)
Maturity of an option
Risk-free rate
Volatility of the Stock
Current Price of the stock
Striking Price of the put

Output
Up Rate of the Stock
Down Rate of the Stock
Probability
The Price of the Put

5
0.4167
0.1
0.4
50
50

1.122406
0.890943
0.50732
4.489

Calculation

Please click 'calculation' after you input all data.

0

5
89.06767
0

79.35423
0
70.700102527
0
62.98977
0.636005
56.1203
2.16259
50
4.4885991938

70.7001
0
62.98977
0

56.1203043251
1.301711622
50
3.771269

44.54716
6.959967

56.1203
0
50
2.664213

44.5471568636
6.3782645017
39.68898
10.36164

44.54716
5.452843
39.68898
10.31102

35.3606276461
14.6393723539

35.36063
14.63937
31.50431
18.49569
28.06855
21.93145

Calculation