7. Consider the following 3-date binomial model, in which the annual interest rate is 9 percent and in which the stock price goes up by 15 percent or down by 10 percent per period:

a. Price a European call on the stock with exercise price 60.

b. Price a European put on the stock with exercise price 60.

c. Price an American call on the stock with exercise price 60.

d. Price an American put on the stock with exercise price 60.