Draw a 2-period binomial tree for a stock with $1200 price and 50% standard deviation. a) The annual risk-free rate is 3%. Calculate the periodic risk free rate used for an option expiring in 201 days in a two-period binomial tree. b) Calculate the up and down parameters as well as the risk-neutral probabilities. Draw the tree. c) Price an ATM European call option. d) Calculate by hand the value of the European call in point c) using the Black-Scholes-Merton formula. Don't forget to use the risk free rate as a log return. e) Using the put-call parity formula and your answer in d), calculate the value of a European put