We intend to value a European put option with a strike price X=$10 and T=1 year to expiry, using a one-step binomial model, with the following parameters: u=1.2, d=0.8333. The risk-free interest rate (continuously compounded) is 3% per annum. = ST 12.00 P = ? So = 10 P= ? = ST 8.33 P= ? Time 0 Time 1 Give your answer correct to two decimal places, or your 1. The value of the put option in the up state at time 1 is $ answer will be incorrect. The value of the put option in the down state at time 1 is $ answer will be incorrect. Give your answer correct to two decimal places, or your position in units of shares and a 2. The portfolio that replicates the payoff on the put option is short position of $ in a riskless bond (that is long question correct to three decimal places. Give your numerical answers to this part of the 3. Hence the value of the put option at time 0 is $ Give your answer correct to two decimal places, or your answer will be incorrect Do not include the dollar sign "$" in any of your numerical answers. We intend to value a European put option with a strike price X=$10 and T=1 year to expiry, using a one-step binomial model, with the following parameters: u=1.2, d=0.8333. The risk-free interest rate (continuously compounded) is 3% per annum. = ST 12.00 P = ? So = 10 P= ? = ST 8.33 P= ? Time 0 Time 1 Give your answer correct to two decimal places, or your 1. The value of the put option in the up state at time 1 is $ answer will be incorrect. The value of the put option in the down state at time 1 is $ answer will be incorrect. Give your answer correct to two decimal places, or your position in units of shares and a 2. The portfolio that replicates the payoff on the put option is short position of $ in a riskless bond (that is long question correct to three decimal places. Give your numerical answers to this part of the 3. Hence the value of the put option at time 0 is $ Give your answer correct to two decimal places, or your answer will be incorrect Do not include the dollar sign "$" in any of your numerical answers