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\title{Derivatives Lab}
\author{Session 11}
\date{October 25, 2011}
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\item Modify your binomial tree algorithm to price an American put
option (the holder may exercise the option at any time before
expiration).  Is the price of an American put higher or lower than
that that of a European put with otherwise identical parameters?

\item Look up stock option quotes for European call options on the
stock of a major corporation.  Plot the implied volatility vs.\ the
strike price, while the time to maturity is fixed.  (The applicable
interest rate is the spot rate for zero coupon bonds of the same
maturity.)

\end{enumerate}


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