A stock selling at $80 will either go up at the rate of u= 10% or go down at the rate of d= -10% each month for the next two months. The constant risk free rate is 1% per month. The stock will pay a dividend of $5 next month.

What is the price of an American put with a strike price of $75 in and a maturity of two months?

What is the price of an American call with a strike price of $75 in and a maturity of two months?

Please show calculations in answer. will give thumbs up for correct responses!