Questions 1-8 should be answered by building a 15-period binomial model whose parameters should be calibrated to a Black-Scholes geometric Brownian motion model with: T=.25 years, So= 100, r-296, =30% and a dividend yield of c=1% 1. Compute the price of an American call option with strike K=110 and maturity T=25years. 2. Compute the price of an American put option with strike K=110 and maturity T=25years. 3. Is it ever optimal to early exercise the put option of Question 2? Yes or No? 4. If your answer to Question 3 is "Yes", when is the earliest period at which it might be optimal to early exercise? (If your answer to Question 3 is "No", then you should submit an answer of 15 since exercising after 15 periods is not an early exercise.) 5. Do the call and put option prices of Questions 1 and 2 satisfy put-call parity? Yes or No? 6. Compute the fair value of an American call option with strike K=110 and maturity n=10 periods where the option is written on a futures contract that expires after 15 periods. The futures contract is on the same underlying security of the previous questions