Question: 2. Let So $10, K = $10, r = 8%, T=0.5, and q = 0. Let u= 1.3, d=0.8, and n = 1. a.

2. Let So $10, K = $10, r = 8%, T=0.5, and q = 0. Let u= 1.3, d=0.8, and n = 1. a. What are the premium, A, and B for a European put? b. Show both the put and the synthetic put in a diagram. Label properly. 10 12 14

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