The price of a stock is currently $45. Over each of the next two six-month periods, the stock is expected to go up by 10% (u = 1.1). The downward movement is d = 1/u. The risk-free interest rate is 10% per year with discrete compounding. Using the Binomial Option Pricing Model, answer the following questions:

What is the value of a one-year American put option with a strike price of $50? Again, show your calculations. There is no need to construct the risk-free portfolio for part (c)