ABC Corporation is currently trading at $40, with volatility =20%, r=4%, and no dividends. Assume that the ABC stock price can be modeled according to a three period binomial approach with T=9 months and n=3, so that the stock price moves every 3 months.

Part A Build out the binomial tree for ABC.

Part B What is the value of an American put option with strike price 55?

Part C What is the value of a European call option with strike price 40?

Part D Use an online Black-Scholes calculator to calculate the value of a 9 month European call uption on a stock trading at $40 with strike $40, =20%, r=4%, and no dividends.