The stock prices are modelled with a 12-period binomial tree, each period being one month. You are given: The tree is constructed based on forward prices. The stock's initial price is RM72. The annual continuously compounded risk-free interest rate is 7%. The stock pays continuous dividends proportional to its price at a rate of 2%. o=0.10. A European put option on the stock expiring in one year has strike price of RM60. Calculate the put option premium. (8 marks) The stock prices are modelled with a 12-period binomial tree, each period being one month. You are given: The tree is constructed based on forward prices. The stock's initial price is RM72. The annual continuously compounded risk-free interest rate is 7%. The stock pays continuous dividends proportional to its price at a rate of 2%. o=0.10. A European put option on the stock expiring in one year has strike price of RM60. Calculate the put option premium. (8 marks)