1. A stock price is currently $50. Over each of the next two one-year periods it is expected to go up by 20% or down by 20%. The risk-free interest rate is 5% per annum. Option's strike is K = 52. (a) What is the value of a two-year European call option (replicating portfolio approach)? (b) What is the value of a two-year European put option (replicating portfolio approach)? (C) What is the value of a two-year European call option (emm ap- proach)? (d) What is the value of a two-year European put option (emm ap- proach)? (e) What are the deltas of the call option? (f) What are the deltas of the put option? (g) Verify that the European call and European put prices satisfy the put-call parity. (h) What is the value of a two-year American call option? (i) What is the value of a two-year American put option? 1. A stock price is currently $50. Over each of the next two one-year periods it is expected to go up by 20% or down by 20%. The risk-free interest rate is 5% per annum. Option's strike is K = 52. (a) What is the value of a two-year European call option (replicating portfolio approach)? (b) What is the value of a two-year European put option (replicating portfolio approach)? (C) What is the value of a two-year European call option (emm ap- proach)? (d) What is the value of a two-year European put option (emm ap- proach)? (e) What are the deltas of the call option? (f) What are the deltas of the put option? (g) Verify that the European call and European put prices satisfy the put-call parity. (h) What is the value of a two-year American call option? (i) What is the value of a two-year American put option