= The current price of a non-dividend paying stock is 100. You constructed the following three period binomial model using u = 1.2 and d = 0.9. The length of each period is 1 month. 172.8 144 120 129.6 100 108 90 97.2 81 72.9 The continuously compounded risk-free interest rate is r = 5%. Use the binomial model to price a 3-month straddle consisting of a 100-strike call and a 100-strike put. Use the same model constructed in Question 4 to price an American put option with strike 108 that expires in 2 months. (Note one only needs the first 2 periods of the model). = The current price of a non-dividend paying stock is 100. You constructed the following three period binomial model using u = 1.2 and d = 0.9. The length of each period is 1 month. 172.8 144 120 129.6 100 108 90 97.2 81 72.9 The continuously compounded risk-free interest rate is r = 5%. Use the binomial model to price a 3-month straddle consisting of a 100-strike call and a 100-strike put. Use the same model constructed in Question 4 to price an American put option with strike 108 that expires in 2 months. (Note one only needs the first 2 periods of the model)