2. Consider a European put option with strike price K = 100 based on a Binomial model with T=5, So = 100, u = 2, d=0.6, and r = 0.05. (a) Use an Excel spreadsheet to find the arbitrage-free initial price of the put option. Please be aware that the Excel spreadsheet will use a recombining binary tree. Please print your spreadsheet and hand it in (do not email your file). Recommendation: Try the procedure on Problem 1 first to make sure it's working properly (b) Use the direct formula to compute the arbitrage-free initial price