Cassiopeia inc. is currently trading at $100 per share. After examining the stock of Cassiopeia, you have determined that in each 3 month period its price will either increase to 25% or decrease by 20%. The interest rate is 3% every 3 months.

a)A six month European call option on Cassiopeia has an exercise price of $90.What is the value of this call option? b)What is the value of a six month European put option on Cassiopeia with anexercise price of $90? c)Verify that put-call parity holds. d)Now suppose that Cassiopeia pays a dividend equal to $25 in three months.What is the value of a six month American call option on Cassiopeia with anexercise price of $90? Would you ever want to exercise this option early?