American put option
= American put option
An American put has exercise payoff $(K-S_n)^+$. In a finite binomial market, <backward option pricing> compares that payoff with the discounted risk-neutral continuation value at every node.
= American put option
An American put has exercise payoff $(K-S_n)^+$. In a finite binomial market, <backward option pricing> compares that payoff with the discounted risk-neutral continuation value at every node.