Assume that the price S of a risky asset follows a standard Binomial model withS.0/ D $100, u D 10% and d D 10%. The asset pays a dividend of $5 on the odd times, i.e.,1; 3; 5 : : : . Money market fund interest rate is 5% (continuous). The time horizon is N D 3.1-a) Determine the ex-dividend stock price tree.It may be helpful to also include the cum-dividend prices.1-b) Create a self-financing portfolio replicating a European call with strike price K D 87 andexpiry date N D 3. Note that, you need to determine the predictible processes .x.n/; y.n// for theamount of risky asset S and the risk-free asset A.[Keep 4 decimals to reduce rounding errors (not necessary)]1-c) Find the current price of European Put with the same strike and maturity as in part b.[Hint: What is the Put-Call Parity with dividends?] 1-d) Price an American call with strike price K D 87 and expiry date N D 3.Recall that, C A D C E assumes no dividends.