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4. Let S = $100, K = $95, r = 8%, = 0.3, = 0, T = 1 year. = 1.3 and d = 0.8.

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4. Let S = $100, K = $95, r = 8%, = 0.3, = 0, T = 1 year. = 1.3 and d = 0.8. The stock price is modeled by a 2-period binomial tree and the length of cach period is 6months Determine the premium of 95-strike European put with 1 year to expiration

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