5. A stock price is currently $60. Over each of the next two six-month periods it is expected to go up by 5% or down by 5%. The risk-free interest rate is 5% per annum with continuous compounding. With a two-step Binomial tree, solve the following,

(a) What is the value of a one-year European call option with a strike price of $61?

(b) What is the value of a one-year European put option with a strike price of $59?

(c) What is the value of a one-year American put option with a strike price of $59?