21.7. Future prices of a stock are modeled with a 2-period binomial tree, each period being one year. You are given: (i) The tree is constructed based on forward prices. (ii) The initial stock price is 50. (iii) The continuously compounded risk-free interest rate is 3%. (iv) The stock pays continuous dividends proportional to its price at a rate of 6%. (v) o=0.3. An American call option on the stock expiring in 2 years has strike price 60. Determine the price of the call option. 21.8. Future prices of a nondividend-paying stock are modeled with a 2-period binomial tree, each period being one year You are given (1) The ratio of the stock price at the upper node of a branch to the price at the beginning of the branch is 1.3. (ii) The ratio of the stock price at the lower node of a branch to the price at the beginning of the branch is 0.75 (11) The initial stock price is 100. (iv) The continuously compounded risk-free interest rate is 10%. An American put option on the stock expiring in 2 years has strike price 120. Determine the price of the option