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Question 8 (10 points) Consider the following binomial option pricing problem. This option has two periods to go before expiring. Its stock price is $95

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Question 8 (10 points) Consider the following binomial option pricing problem. This option has two periods to go before expiring. Its stock price is $95 and its exercise price is $100. The risk-free rate is 5%, the value of u is 1.25x and the value of the dis 0.85x. The stock pays dividend at the end of the first period at the rate of 3%. Construct the 2-period Binomial Tree model and find the value of both the call and put premiums FREE CALCULATION AREA E Call Premium Put Premium

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