Question 6 A stock price is currently $100. Over each of the next two six-month periods it is expected to go up by 10% or down by 10%. The risk-free interest rate is 8% per annum with continuous compounding. uestion 6s Find the value of a one-year European call option with a strike price of $100 using binomial tree. (7 marks) aestion 60 Use binomial tree to calculate the one-year European put of the same strike. (5 marks) uestion 6c (3 marks) Use put-call parity to verify the calculation for Question 6(b). westion 6d Suppose that the put option were American, would it ever be optimal to exercise it prematurely at any of the nodes on the tree