1. Consider the discrete-time binomial tree model with three periods of length 1 , i.e. T=3 and t=0,1,2,3. In each period the price can move up or down, St+1 is either uSt or dSt. Assume that the factor for moving up is u=4/3, the factor for moving down is d=3/4, and that the interest rate is r=0.0. The initial stock price is S0=1. (a) Compute the price process (i.e. prices at all times and states) for a European Put option on the stock with strike price K=1 and maturity T=3