I have to price an american option on a daily basis and I have some questions regarding the CRR binomial tree model:
Is it correct to use implied volatility as an input? Or is it better to use historical vol? If I were to use implied vol, should I calculate one vol per node or just one vol using the time-to-expiry?
Is it correct to use a yield curve to price each node of the tree or should I discount all the nodes just with a single interest rate?
Is there a standard number of steps to build the tree? I'd like to use one step per day, but I don't know if it is correct.
Thanks for your help!