Suppose a stock has an expected return of 10% per year and a return volatility of 28% per year and equally likely transitions (i.e. with probability 1/2). The risk-free rate is 4% per year. The stock has a current price of $100 and has declared dividends of $2.04 to be paid at the end of each six-month period.

1. Construct a binomial model for the stock price of ABC with 2 semi-annual periods.
2. Find the value of a European call option expiring in 1 year with a strike price of $104 using the binomial model.
3. Find the value of a European put option expiring in 1 year with a strike price of $104 using the binomial model.
4. Find the value of an American call option expiring in 1 year with a strike price of $104 using the binomial model.
5. Find the value of an American put option expiring in 1 year with a strike price of $104 using the binomial model.