Currently, the stock Twentycent is $630.$ The annualized volatility is $15\%.$ The continuously compounded risk$-$free rate is $4\%$ p$.$a$..$ The continuous dividend yield is $2\%.$ Use a $2-$step binomial tree to price a European

put option that has a strike price of $630$ and expires in $1$ year.

$1.$ Consider the European put option:

What is the value of d$?$

$($Leave $4$ d$.$p$.$ for the answer$)$

$2.$ What is the value of Sud?

$($Leave $2$ d$.$p$.$ for the answer$)$

$3.$ What is the value of put option value at node uu$?$

$4.$ What is the value of put option value at node d$?$

$($Leave $2$ d$.$p$.$ for the answer$)$

$5.$ What is the put option premium at t$=0?$

$($Leave $2$ d$.$p$.$ for the answer$)$

$6.$ What is the option premium of an otherwise identical European call?

$($Leave $2$ d$.$p$.$ for the answer$)$

$7.$ What is the option premium of an otherwise identical American put?

$($Leave $2$ d$.$p$.$ for the answer$)$