Suppose the current price of a risky asset is $100. The asset follows a multiplicative binomial process and its price every period can go up by a factor of u=1.15 or go down by a factor of d=0.95. You are given that the risk free interest rate is R=3% per period. 1. Work out B, the one period discount factor, qu and qu, the pure security prices, and th, and Th, the risk neutral probabilities. 2. Price a one period European Call on the risky asset with a strike price of $103 using the Pure Securities Approach. 3. Confirm the price of the one period European Call in part 2 above with the Replicating Portfolio Approach. 4. Price a one period European Put on the risky asset with a strike price of $103 using the Pure Securities Approach. 5. Confirm the price of the one period European Put in part 4 above with the Replicating Portfolio Approach 6. Confirm that the European Put Call Parity holds. 7. Price a two period European Call on the risky asset with a strike price of $108 using the Pure Securities Approach. 8. Price a two period European Put on the risky asset with a strike price of $108 using the Pure Securities Approach. 9. Confirm that the European Put Call Parity holds at node-u, at node-d, and node-0