7. Consider a multiperiod Binomial model in which T = 1 and there are two basic assets. One is riskless while the other one is a risky asset. The riskless asset's price at time / () is $1 and the risk-frce rate is 5% in each time period. There are two possibilities of the price movement for the risky asset; it can either move up to u 125% or move down to d= 75% and S(O) 100. Consider a European put option written on the risky asset with a strike price K 100 and time to maturity T = 4. Assume the exercise time for this option is only at its maturity. Find out the put option's arbitrage-free value at time t = 0,1,2,3. 7. Consider a multiperiod Binomial model in which T = 1 and there are two basic assets. One is riskless while the other one is a risky asset. The riskless asset's price at time / () is $1 and the risk-frce rate is 5% in each time period. There are two possibilities of the price movement for the risky asset; it can either move up to u 125% or move down to d= 75% and S(O) 100. Consider a European put option written on the risky asset with a strike price K 100 and time to maturity T = 4. Assume the exercise time for this option is only at its maturity. Find out the put option's arbitrage-free value at time t = 0,1,2,3