consider a 2 year European put with a strike price of $55 on a stock whose current price is $50 we suppose that There are two time steps of one year and the each time step the stock either move up by 20% or more down by 20%. We also suppose that the risk free interest rate is 5%

* Determine the put price, using binomial trees.

*Determine also the corresponding price of an American put option with the same structure