a) The current stock price is $25. Over each of the next two three-month periods, it is expected that the stock price will increase by 15% or decrease by 12%. The continuously compounded risk- free rate of interest is 8% per annum. i. What is the risk-neutral probability of an up state? (2 marks) ii. What is the price for a six-month European put option with a strike price of $28? Please show the two-step binomial tree. (9 marks) ill. What is the price for a six-month American put option with a strike price of $28? Please show the two-step binomial tree. (9 marks) (Total Marks:20)