The following information refers to parts 1-5 below, select the right answer from the drop-down menu and answer the compute questions. Consider a three-period (0,1, and 2) binomial time-state model in which there are two securities, a bond and a stock. The payments made by the stock are shown in the binomial tree below: The patom vector represents the atomic (time-state) prices of elementary payment for states g,b,gg,gb,bg and bb, respectively. (0.630.300.390.190.190.10) Round your answers to 3 decimal digits if necessary. 1) Compute the discount factor of period 2: 2) Compute the forward atomic price of state g: 3) Compute the arbitrage-free price of a European put option on the stock expiring at period 2 with strike price 1.0069 : 4) Compute the arbitrage-free price of an American put option on the st at period 2 with strike price 1.0069: \begin{tabular}{|l|l|l|} \hline 5) In which period-state do you exercise the American put option above & 0 \\ & 1g \\ Please answer all parts of the question. & 1b \\ & 2gg \\ & 2gb \\ & 2bg \\ & 2bb \\ \hline \end{tabular} The following information refers to parts 1-5 below, select the right answer from the drop-down menu and answer the compute questions. Consider a three-period (0,1, and 2) binomial time-state model in which there are two securities, a bond and a stock. The payments made by the stock are shown in the binomial tree below: The patom vector represents the atomic (time-state) prices of elementary payment for states g,b,gg,gb,bg and bb, respectively. (0.630.300.390.190.190.10) Round your answers to 3 decimal digits if necessary. 1) Compute the discount factor of period 2: 2) Compute the forward atomic price of state g: 3) Compute the arbitrage-free price of a European put option on the stock expiring at period 2 with strike price 1.0069 : 4) Compute the arbitrage-free price of an American put option on the st at period 2 with strike price 1.0069: \begin{tabular}{|l|l|l|} \hline 5) In which period-state do you exercise the American put option above & 0 \\ & 1g \\ Please answer all parts of the question. & 1b \\ & 2gg \\ & 2gb \\ & 2bg \\ & 2bb \\ \hline \end{tabular}