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Consider a one-period forward binomial tree with h 1, S(0)-100, r = 0.08, = 0.3, 0.08. (a) (5 pts) Find the expression Ve (0, K)

Consider a one-period forward binomial tree with h 1, S(0)-100, r = 0.08, = 0.3, 0.08. (a) (5 pts) Find the expression Ve (0, K) for the time-0 price of the American call option on S with strike K and maturity at the end of the period. (b) (3 pts) Determine the condition for the strike K to be such that early exercise occurs? (c) (2 pts) In particular, is there early exercise for K 70

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