2. Use the binomial method to determine the value of an American Put option at time t = 0. The American Put option expires at time t = T = 3 and has exercise price E = 10. The current value of the underlying is S(0) = 10 and the interest rate is r = 0.05. Use a time step dt = 1. Consider the case of p = 1/2 and suppose the volatility o = 0.4. Perform all calculations using a minimum of 4 decimal places of accuracy. 3. Consider the value V(C, P,t) of a chooser option where C = C(s, t) and P = P(S, t) depend on the same underlying asset S. The chooser option has an expiry date of t = T1 with an exercise price E. Both the call C and the put P have the same expiry date of t = T2 and the same exercise price E2. Determine the value of the chooser option V(C, P,t) in the special case where T1 = T). You may assume E2 > E 2. Use the binomial method to determine the value of an American Put option at time t = 0. The American Put option expires at time t = T = 3 and has exercise price E = 10. The current value of the underlying is S(0) = 10 and the interest rate is r = 0.05. Use a time step dt = 1. Consider the case of p = 1/2 and suppose the volatility o = 0.4. Perform all calculations using a minimum of 4 decimal places of accuracy. 3. Consider the value V(C, P,t) of a chooser option where C = C(s, t) and P = P(S, t) depend on the same underlying asset S. The chooser option has an expiry date of t = T1 with an exercise price E. Both the call C and the put P have the same expiry date of t = T2 and the same exercise price E2. Determine the value of the chooser option V(C, P,t) in the special case where T1 = T). You may assume E2 > E