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

-Verify that the binomial option price for an American call option is $18.283.Verify that there is never clearly exercise; hence a European call would have the same price.

-Show that the binomial option price for a European put option is $5.979.Verify that put-call parity is satisfied.

-verify that the price of an American put is $6.678.