The risk free rate is 2% per period and there are European call and put options available on the stock with an exercise price of $35. Use the binomial model to value each of the options today.

Please solve for Pc and Pp. answers are given at the bottom but must show work.

IC4 Binomial Option Pricing 7.,6 534 A. 2.64 532 $30.08 S28.28 Time The risk free rate is 2% per period and there are European call and put options available on the stock with an exercise price of $35. Use the binomial model to value each of the options today. EV,- P (31.T) CI-p) (32.4) 34.72: p(31,U7) + (1-p)(22 Uy) .02 5.03 p.65 Binomial Option: p 05507, Pc S0.78, Pp $2.42