Based on the spot price of $16 and the strike price $18 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: Binomial trees: Additionally, assume that over each of the next two four-month periods, the share price is expected to go up by 11% or down by 10%.

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

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

c. Show whether the put-call-parity holds for the European call and the European put prices you calculated in a. and b.

d. Use a two-step binomial tree to calculate the value of an eight-month European call option using risk-neutral valuation.

e. Use a two-step binomial tree to calculate the value of an eight-month European put option using risk-neutral valuation.

f. Verify whether the no-arbitrage approach and the risk-neutral valuation lead to the same results.

g. Use a two-step binomial tree to calculate the value of an eight-month American put option.

h. Calculate the deltas of the European put and the European call at the different nodes of the binomial three.