(3) Consider an arbitrage-free binomial tree for a stock paying no income. At time 0, the stock price is 50. At each later time point, the stock price can go up by 20% or down by 30%. The constant annually compounded interest rate is 5%. t af a 40 wirlie Eanpean cll on the sw U Resul 10.6.2 of the Lecture Notes. (b) Find the price at time 0 of a 40-strike European call with maturity at 3. (c) Find the price at time 0 of a 40-strike European put on the stock with maturity at 2 (d) Find the price at time 0 of a 40-strike American call on the stock with maturity at 2. Hint: What do you know about the relationship between European and American calls on a stock paying no income? (3) Consider an arbitrage-free binomial tree for a stock paying no income. At time 0, the stock price is 50. At each later time point, the stock price can go up by 20% or down by 30%. The constant annually compounded interest rate is 5%. t af a 40 wirlie Eanpean cll on the sw U Resul 10.6.2 of the Lecture Notes. (b) Find the price at time 0 of a 40-strike European call with maturity at 3. (c) Find the price at time 0 of a 40-strike European put on the stock with maturity at 2 (d) Find the price at time 0 of a 40-strike American call on the stock with maturity at 2. Hint: What do you know about the relationship between European and American calls on a stock paying no income