a) The current price of a stock is 100 and in six months from now it will be either 125 or 80. The constant risk-free interest rate is 12.15% per month continuously compounded. Using a twoperiod binomial model answer the following questions (show all the details of your calculations and present your results with four decimal places). i. What is the price of a European call option with a strike price of 100 maturing in one month? ii. What is the price of a European put option with a strike price of 100 maturing in one month? iii. Considering your answers for parts (i) and (ii), check whether the put-call parity holds (NB: assume continuous compounding and two decimal places). iv. What is the price of an American put option with a strike price of 100 maturing in one month?