Consider a European put option on a non-dividend-paying stock where the stock price is $50, the strike price is $50, the risk-free rate is 4% per annum, the volatility is 35% per annum, and the time to maturity is 1 year.You must work this problem out no excel

(a) Calculate u, d , and p for a two-step Binomial tree.

(b) Value the option using a two-step Binomial tree (Draw the tree)