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 5% per annum. St = 12.00 P= ? = So 10 P= ? St = 8.33 P= ? Time 0 Time 1 1. The value of the put option in the up state at time 1 is $ Give your answer correct to Time 0 Time 1 1. The value of the put option in the up state at time 1 is $ Give your answer correct to two decimal places, or your answer will be incorrect. The value of the put option in the down state at time 1 is $ Give your answer correct to two decimal places, or your answer will be incorrect. 2. The portfolio that replicates the payoff on the put option is a position in units of shares and a position of $ in a riskless bond (that is investing). Give your numerical answers to this part of the question correct to three decimal places. 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 5% per annum. St = 12.00 P= ? = So 10 P= ? St = 8.33 P= ? Time 0 Time 1 1. The value of the put option in the up state at time 1 is $ Give your answer correct to Time 0 Time 1 1. The value of the put option in the up state at time 1 is $ Give your answer correct to two decimal places, or your answer will be incorrect. The value of the put option in the down state at time 1 is $ Give your answer correct to two decimal places, or your answer will be incorrect. 2. The portfolio that replicates the payoff on the put option is a position in units of shares and a position of $ in a riskless bond (that is investing). Give your numerical answers to this part of the question correct to three decimal places. 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