Problem 3 (15 points). The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. The risk-free rate is 5%. a) Use the no-arbitrage approach to find the price of a European 6-month call option with a strike price of S32 b) Use risk-neutral valuation to find the price of a European 6-month put option with the same strike price Problem 3 (15 points). The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. The risk-free rate is 5%. a) Use the no-arbitrage approach to find the price of a European 6-month call option with a strike price of S32 b) Use risk-neutral valuation to find the price of a European 6-month put option with the same strike price