Shares in a certain company are currently priced at 90 pence each. One year from now, their price will either have risen by 20% (with probability 0.5) or fallen 20% (with probability 0.5). Take the annual riskfree interest rate as r = 0.05 (compounded continuously). Calculate the expected discounted payment from selling one share a year from now. Use the One-Step Binomial Model to find the value now of a European call option on one share, with expiry date one year from now and with exercise price 95 pence. Suppose going from the end of Year 1 to end of Year 2, the share price evolves in the same probabilistic and proportional way as specified within Year 1, with annual riskfree rate r 0.05. By using the One-Step Binomial Model (twice over), find the value now of a European call option on one share, with expiry date T 2 years from now and with exercise price 95 pence. Use the Put-Call Parity Formula to find the value now of a European put option on one share, with expiry date T 2 years from now and with exercise price 95 pence