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do all the steps. I am including a problem and an example. do all the steps that the example problem have. Example problem question A

do all the steps. I am including a problem and an example. do all the steps that the example problem have.
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A stock price is currently $50. It is known that at the end of six months it will be either $45 or $55. The risk-free interest rate is 10% per annum with continuous compounding. What is the value of a six-month European put option with a strike price of $50? P Sou, fu P 55,0 So,f 50,5 Sod, fa 45,50 - 45 Answer: 55 : 1.1, d = 0.9, r = 0.1, 1 = , fu = 0, fa = 50(Strike Price) 45 = 5 1-p 1-p U = 45 50 50 erT - d 20.1X1 -0.9 1.1 -0.9 -0.756 p= u-d f = e-T[pfu + (1 - p)fa] = e-0.1* } (0.756 x 0 + (1 0.756) * 5) = 1.16 Problem 2: A stock price is currently $51.50. It is known that at the end of six months it will be either $55 or $45. The risk-free interest rate is 10% per annum with continuous compounding. What is the value of a six-month European put option with a strike price of $50

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