Consider a European put option with strike K=$50 and expiry T=5 months on a stock with a current stock price of $49 that follows a binomial model: the stock price at exercise date is $54 with probability 0.6, or $39 with probability 0.4. Let the risk- free rate of interest compounded continuously be 2%. (a) Find the risk-neutral probabilty that the stock price will increase P = olo (b) Find the no-arbitrage value of this put option. Price = dollars. (c) Find the expected gain to a holder of this put option on the exercise date Gain = dollars. Consider a European put option with strike K=$50 and expiry T=5 months on a stock with a current stock price of $49 that follows a binomial model: the stock price at exercise date is $54 with probability 0.6, or $39 with probability 0.4. Let the risk- free rate of interest compounded continuously be 2%. (a) Find the risk-neutral probabilty that the stock price will increase P = olo (b) Find the no-arbitrage value of this put option. Price = dollars. (c) Find the expected gain to a holder of this put option on the exercise date Gain = dollars