Question No: 05 This is a subjective question, hence you have to write your answer in the Text-Field given below. Use a two-period binomial tree to price the American put option with the following parameters: S = 100, u =1.10, d = 0.90, r = 5% pa, K = 90, T - 6 months. Also a dividend of 4 is expected at the end of the first period. Draw the stock process - Differentiate between cum-dividend and ex-dividend prices Compute the risk-neutral probability. Compute the Put price. [14] . . Question No: 05 This is a subjective question, hence you have to write your answer in the Text-Field given below. Use a two-period binomial tree to price the American put option with the following parameters: S = 100, u =1.10, d = 0.90, r = 5% pa, K = 90, T - 6 months. Also a dividend of 4 is expected at the end of the first period. Draw the stock process - Differentiate between cum-dividend and ex-dividend prices Compute the risk-neutral probability. Compute the Put price. [14]