Question: = 3. Define a binomial tree with u = 1.2, d = 0.8, (r + 1) = 0.9, and p = 0.4. Construct the tree

= 3. Define a binomial tree with u = 1.2, d = 0.8, (r + 1) = 0.9, and p = 0.4. Construct the tree for n=2 with So = 10. Souu Sou SO Soud Sod Sodd (a) What is the price of a European put option maturing at time n = 2 with K = 11? (b) What is the price of a lookback option with the payoff at time n = 2 equal max S, -SZ? (c) What is the price of an American put option maturing at time n = 2 with K = 14? OSAS2 n= = 3. Define a binomial tree with u = 1.2, d = 0.8, (r + 1) = 0.9, and p = 0.4. Construct the tree for n=2 with So = 10. Souu Sou SO Soud Sod Sodd (a) What is the price of a European put option maturing at time n = 2 with K = 11? (b) What is the price of a lookback option with the payoff at time n = 2 equal max S, -SZ? (c) What is the price of an American put option maturing at time n = 2 with K = 14? OSAS2 n=

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