Consider the following three-date binomial model:

? In each period the stock price either goes up by 30% or decreases by 10%.

? The one-period interest rate is 25%

a. Consider a European call with X = 30 and T = 2. Fill in the blanks in the tree:

b. Price a European put with X = 30 and T = 2.

c. Now consider an American put with X = 30 and T = 2. Fill in the blanks in the tree:

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Stock price Bond price 50.70 1.5625 39.00 1.25 30 35.10 1.5625 27.00 1.25 24.30 1.5625