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QU CANADIAN MYCUD Fit T Question 1: James Blunt LLC, a newly publicly listed company in San Diego, is currently valued at $160. Over each of the next two six-months, analysts forecast the stock price will go up by 15% or down by 15%. The current risk-free rate is 3% per year. Given that the current exercise price is $140, based on the Binomial Option Pricing model Estimate the value of one-year European call option. Clearly show the binomial trees as part of your calculations (m) Estimate the value of one-year European put option. Clearly show the binomial trees as part of your calculations (mif the risk-free rate is increased to 10% p.a., what do you expect to happen to the European put premium today? Explain your answer. mimum attachments: 1