USING THE BINOMIAL MODEL A stock price is currently $100. Over the next two-six month periods, the stock is expected to go up by 10% or down by 10% (movement each period). The risk-free interest rate is 2% per annum with continuous compounding. What is the value of a one-year European call option with a strike price of $100? What is the value of the put option with the same strike price? Prove your work with put call parity