Problem 5. You are interested in pricing European and American put options on a stock using a four-period binomial model with notation and set-up as in Chapter 10 of the text. So = 20, u= 1.2, d= 0.82, h = 1,= 0, and p = 0.05 The European and American put options expire at the end of the 4th period and each has a strike price of 20. As in the text, r as a continuously compounded interest rate. Compute the price the European put option and the American put option. Problem 5. You are interested in pricing European and American put options on a stock using a four-period binomial model with notation and set-up as in Chapter 10 of the text. So = 20, u= 1.2, d= 0.82, h = 1,= 0, and p = 0.05 The European and American put options expire at the end of the 4th period and each has a strike price of 20. As in the text, r as a continuously compounded interest rate. Compute the price the European put option and the American put option