The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European call option on the stock with a strike price of $32 that expires in 6 months. Each step is 3 months, and assume the risk free rate is zero. The stock will either go up 10% or drop 10% at each node as illustrated in the above picture. What is the option price? Question 11 options:

$1.075

$1.625

$2.15

$3.075

Under the same setting, what is the put option price with the same strike price of 32?

Question 12 options:

$1.15

$1.625

$2.15

$3.075