Assume today is 27 August, 2016. November Natural Gas futures are currently trading at $2.50/MMBTU. The interest rate is 1.25% (annualized). The volatility of the November futures is .40 (annualized). The NG futures options expire on 27 October, 2016. Use the binomial model with two steps to determine the price of a European put and a European call on November NG futures struck at $2.60.

(Please answer this question on an excel sheet. Cell calculations are very helpful. Round all numbers to the fourth decimal places. )