A share is worth 100 at this time. For each of the next six month intervals, the price is expected to increase by 20% (twenty percent) or decrease by 5% (five percent). Using continuous compounding with a risk-free interest (rf) of 8 percent p.a. and an exercise price of Rp105, you are asked to: a. Calculates the value of

a European put option for one year. (10 points)

b. Draw a binomial tree. (10 points)