Solution
= Solution
The terminal European put pays zero at the upper and middle nodes and $864-384=480$ at the lower one. Its <probability> is $(1-p)^2=1/9$. Thus
$$
\boxed{V_0=R^{-2}\frac{480}{9}=30.}
$$
= Solution
The terminal European put pays zero at the upper and middle nodes and $864-384=480$ at the lower one. Its <probability> is $(1-p)^2=1/9$. Thus
$$
\boxed{V_0=R^{-2}\frac{480}{9}=30.}
$$