1. You should build a 15-period binomial model whose parameters are calibrated to a Black-Scholes geometric Brownian motion model with: T=0.25T=0.25 years, S0=100S0=100, r=2%r=2%, =30%=30% and a dividend yield of c=1%c=1%. Your binomial model should use a value of u=1.0395...u=1.0395.... (This has been rounded to four decimal places but you should not do any rounding in your spreadsheet calculations.) Compute the price of an American call option with strike K=110K=110 and maturity T=.25T=.25 years. Result 2.6 6. Compute the fair value of an American call option with strike K=110K=110 and maturity n=10n=10 periods where the option is written on a futures contract that expires after 15 periods. The futures contract is on the same underlying security of the previous questions. 7. What is the earliest time period in which you might want to exercise the American futures option of Question 6