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KPT stock's price is $100, over the next 3 years, the stock price will either increase 60% or decrease 37.5%, each year. The risk free

KPT stock's price is $100, over the next 3 years, the stock price will either increase 60% or decrease 37.5%, each year. The risk free rate of return is 6% per year. There is one option with exercise price =$100 and maturity =3 years. Use 3-time period binomial model to calculate the option price as of today for the following cases:

1. Suppose it is European call option. 2. Suppose it is European put option. 3. Suppose it is American put option.

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