5) A certain non-dividend paying stock is trading at $50 and its volatility is o = 25%. The risk-free interest rate is 1.25% per anuum with continuous compounding a) Use a two-step tree (At = .5) to compute the value of 1-year European put option with strike price of $50? b) What would it be the price if the put were to be American? 5) A certain non-dividend paying stock is trading at $50 and its volatility is o = 25%. The risk-free interest rate is 1.25% per anuum with continuous compounding a) Use a two-step tree (At = .5) to compute the value of 1-year European put option with strike price of $50? b) What would it be the price if the put were to be American