Please solve in excel: The current price of a stock is $100.$ We are trying to price one year European put options with

a two$-$step binomial tree, i$.$e$.,T=1,n=2,h=\frac{1}{2}.$ We are given the following information:

$u=1\mathrm{.}20,d=0\mathrm{.}80,e^{rh}=1\mathrm{.}03.$ Price the following options using the two step tree:

i$.$ A European put option whose payoff at expiration is Max$(K-S_T,0).$ Assume an

exercise price $K=100.$

ii$.$ An Asian put option whose payoff at expiration is Max$(K-S_{\text{a}\text{v}\text{e}\text{r}\text{a}\text{g}\text{e}},0).$ Assume an

exercise price $K=100.$

Note carefully:

$S_T$ is the terminal stock price at expiration

$S_{\text{a}\text{v}\text{e}\text{r}\text{a}\text{g}\text{e}}$ is the average stock price between now $($time $0)$ and expiration

Explain the difference in the prices of the European and Asian options.