Dont copy other chegg answers as they are wrong.

Problem 4. Consider a binomial model with u=1.03,d=103100,=0 and interest rate r=2% a year, compounded continuously. Using T=1 maturity of one year, initial stock price S(0)=100 and N=4 periods: a) find the premium of the European Put P(K) for K=95,100,105,110,115. You're encouraged to use a computer to do this faster. Create a plot of KP(K). b) Write down a mathematical formula for the function KP(K). Hint: this is a piecewise function. c) Compute the price of the European Call with K=100 and verify that Put-Call parity holds