(Multi-period model, American and European) Consider the following twoperiod binomial model: In each period the stock price either goes up by 30%

or decreases by 10%. The one-period interest rate is 25%.

a. Consider a European call with X = $30 and T = 2.

Fill in the blanks in the tree:

b. Price a European put with X = $30 and T = 2.

c. Now consider an American put with X = $30 and T = 2.

Fill in the blanks in the tree:

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