Based on a spot price of $65 and strike price of $70 as well as the fact that the risk-free interest rate is 6% per annum with continuous compounding, please undertake option valuations and answer related questions according to following instructions: risk-free interest rate is 6% per annum with continuous compounding Spot price: 65 Strike Price: 70 Use a two-step binomial tree to calculate the value of an eight-month European call option using the no-arbitrage approach Additionally, assume that over each of the next two four-month periods, the share price is expected to go up by 7% or down by 7%.

Use a two-step binomial tree to calculate the value of a 4 MONTH European call option using the no-arbitrage approach.

Use a two-step binomial tree to calculate the value of an 4 MONTH European put option using the no-arbitrage approach.