Answers are in bold, I just need the explanation!

a. 32. RAY, Co. is trading at $200 per share. You have been asked to compute some option prices on RAY stock. You will use a two-state model and assume that if RAY stock goes up it will increase 15% and if it goes down it will fall 10%. The risk-free rate is 4%. What is the price of a call option with an exercise price of 215? $8.08 b. What is the price of a put option with an exercise price of 215? $14.81 C. What is the price of a put option with an exercise price of 205? $10.58 d. Suppose instead that the stock price increase will be 10% and the stock price decrease will be 5%. What is the price of a put option with an exercise price of 205? What is the price of a call option with an exercise price of 215? $5.77; $2.88