The current price of Retoza Corporation stock is $12. In each of the next two years, this stock price can either go up by $5 or go down by $4. The stock pays no dividends. The one-year risk-free interest rate is 2% and will remain constant. Using the Binomial Model a) calculate the price of a two-year European call option on Retoza stock with a strike price of $14. b) calculate the price of a two-year European put option on Retoza stock with a strike price of $14. PS: In this exercise, you were not told to use the put-call parity. However, it is a good piece of advice to check your calculation using this parity. The current price of Retoza Corporation stock is $12. In each of the next two years, this stock price can either go up by $5 or go down by $4. The stock pays no dividends. The one-year risk-free interest rate is 2% and will remain constant. Using the Binomial Model a) calculate the price of a two-year European call option on Retoza stock with a strike price of $14. b) calculate the price of a two-year European put option on Retoza stock with a strike price of $14. PS: In this exercise, you were not told to use the put-call parity. However, it is a good piece of advice to check your calculation using this parity