Use a two-step binomial option pricing model to value an American put with an exercise price of $50 and a time to expiry of 1 year. The underlying stock is currently priced at S60. The shares are expected to grow at a continuously-compounded rate of 15%, with a volatility of 40%. The continuously-compounded risk-free rate is 5%. Show me trees for the stock price and put values like shown below. The current stocks price is S40. The average continuously compounded return of the stock is 12%. The continuously compounded risk-free rate is 5%. The volatility of the stock is 40%. Use the Black-Scholes put pricing model to value a 6-month European put with a strike price of S45. (Use the attached standard normal table on the next page.) A stock is currently priced at $40, with a continuously compounded rate of return of mu = 15%, and a volatility of sigma = 40%. The continuously compounded risk-free rate is 4%. We want to value a European call contract with a strike price of $45, and an expiry at T = 0.5 years. Use a 5-step binomial approximation in Excel to answer the following questions: a. What are the terminal step values for the put values? b. What are the values of delta T, U, D, and R? c. Show your stock price tree. d. What is the risk-neutral "up" probability, q? e. What is the value of the call option