Given the following, answer the questions that follow:

S= $100,K = $95,r = 8% (and continuously compounded), = 30%,= 0, T = 1 year, and n= 3.

a. Confirm that the binomial option price for an American call option is $18.283. (Hint: There is no early exercise. Therefore, a European call would have the same price.)

b. Demonstrate that the binomial option price for a European put option is $5.979. Verify that put-call parity is satised.

c. Confirm that the price of an American put is $6.678.

I need the formula and answer to part B. Please show all steps and the formula (preferably in excel) for PART B. I need to see the binomial tree formulas.