Assume you have invested in an American put option on USD/. The current exchange rate of the USD/ is 0.0088 and the strike price is 0.019 (both expressed as US dollars per unit of the (foreign currency)). The volatility of the exchange rate is 40% per annum. The domestic and foreign risk-free rates are 3% and 0.5%, respectively. The time to maturity of the option is 3 months. Required: a. What is the value of a three-month American put option given by a three-step binomial tree? Show all calculations for u, d, p, and (1-p) and the calculations related to option value at each node. b. Will the option be exercised at any node? Show all calculations.