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Consider the following binomial option pricing problem. This option has two periods to go before expiring. Its stock price is $65 and its exercise price

Consider the following binomial option pricing problem. This option has two periods to go before expiring. Its stock price is $65 and its exercise price is $60. The risk-free rate is 0.05, the value of u is 1.25 and the value of the dis 0.8. The stock pays dividend at the end of the first period at the rate of 4%. Construct the 2-period Binomial Tree model and find the value of both the call and put premiums Su- SO- Sd Call Premium Put Premium

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