2. Consider a two-step Binomial model. You are given the following incomplete tree, corresponding to a European put option with strike price K 65 2.6545 14.6 7.09 35.6 Figure l: European put with K 65 (a) (3 points) Compute the discrete time interest rate per period r and the risk-neutral probability p (b) (3 points) Find the price of the put option at t 0 and draw the complete binomial tree for the stock price. 2. Consider a two-step Binomial model. You are given the following incomplete tree, corresponding to a European put option with strike price K 65 2.6545 14.6 7.09 35.6 Figure l: European put with K 65 (a) (3 points) Compute the discrete time interest rate per period r and the risk-neutral probability p (b) (3 points) Find the price of the put option at t 0 and draw the complete binomial tree for the stock price