Consider a 2x0.25-year call option with a strike price of $111 on a non-dividend-paying stock when the spot price is $111 and the risk free rate of interest is 13%. Over each of the next two 0.25-year periods, the spot price of the asset is expected to go up by 10% or down by 10%. Calculate the price of the call if it is a European option. Calculate the price of the call if it is an American option. (See Binomial Pricing file on BB to see how American options are priced in binomial world.) A non-dividend paying stock X is trading at $103. A put option for 3 years maturity on the non-dividend paying stock X at a strike price of $81 costs $25. An investor decides to enter in a protective put position for this stock for 3 years. Calculate undiscounted profit or loss of the investor at the end of the maturity if the terminal spot price of stock X turns out to be $85