2) A non dividend paying stock is currently trading at $50 and its volatil- ity is o = 15%. The risk-free interest rate is 2% per anuum with continuous compounding a) Use a three-step tree (At = .5) to compute the value of a 1.5-year Euro- pean put option with strike price of $60. b) Compute the value of an american 60-put. c) Using put-call parity find the value of the european call with strike $60. d) Compute the value of an american $60-call