An investor is interested in the following call option. The current stock price is $12. At each time period, the stock price can increase or decrease by 9%, respectively. Assuming that the annual interest/discount rate is 8%. If the strike price is $12, compute the value of the European and American put options by using a binomial tree model with two time periods (i.e., each period for six months). Use the Black-Scholes formula to compute the option price for the European put option (i.e., based on the same assumptions used in the corresponding lecture). For this question, please submit your Excel worksheet. Answer: European put option price = American put option price = European put option price computed by the Black-Scholes formula = Calculation steps or diagrams