3. Suppose someone longs a $75 stock when the risk-free rate is 10 percent. The stock is held for 2 years and can go up by 33.33% of its value every year. a. If the investor purchased a call option with a $60 strike price, solve for the call option price using the binomial pricing model. Be sure to sketch the binomial lattice. b. Compute the call delta and interpret its meaning. c. If the investor purchased a put option also with a $60 strike price, solve for the put option price using the binomial pricing model. Be sure to sketch the binomial lattice. d. Compute the put delta and interpret its meaning. e. Use the put-call parity relationship to test the binomial pricing model. 3. Suppose someone longs a $75 stock when the risk-free rate is 10 percent. The stock is held for 2 years and can go up by 33.33% of its value every year. a. If the investor purchased a call option with a $60 strike price, solve for the call option price using the binomial pricing model. Be sure to sketch the binomial lattice. b. Compute the call delta and interpret its meaning. c. If the investor purchased a put option also with a $60 strike price, solve for the put option price using the binomial pricing model. Be sure to sketch the binomial lattice. d. Compute the put delta and interpret its meaning. e. Use the put-call parity relationship to test the binomial pricing model