Consider a European call option whose current stock price on the option is sh 20.In each of the two time steps the stock price can increase by 10% each time step is 3 month long. The risk free rate is 12% pa,the strike price is sh 19

Required

Determine the value of a European call option at initial node of the Binomial tree

Determine the value of an American call option at the initial node

Work out repeat in the workings in a & b above assuming this is a put option all other details remaining the same