the risk free return for each period is exp0.05 ( = 1.0513). consider the following stock price dynamics.

we are trying to find the price of the European options using a 2-step binomial options pricing model

any help is much appreciated. thank you

- The risk free return for each period is exp(0.05). Consider the following stock price dynamics. time o time 1 time 2 120 100 110 95 111 105 97 a. Find the time 0 prices of options on the stock with the following characteristics Call/Put T(Maturity) Call Put NN Strike Price 100 105 100 115 Let us denote 0,u,d the time-0 stop, the time-1 spot when S_1-110, and the time-1 spot when S_1-0. We find the q for each spot as follows. - The risk free return for each period is exp(0.05). Consider the following stock price dynamics. time o time 1 time 2 120 100 110 95 111 105 97 a. Find the time 0 prices of options on the stock with the following characteristics Call/Put T(Maturity) Call Put NN Strike Price 100 105 100 115 Let us denote 0,u,d the time-0 stop, the time-1 spot when S_1-110, and the time-1 spot when S_1-0. We find the q for each spot as follows