(b) A two-period binomial model is considered for a stock with the current price of $70. Over each of the next quarter periods, the price is expected to increase by 20% and decrease by 10%. The continuous interest rate is 4% pa. The exercise price is S60 and the time to expiry is half year Find the prices of the following options: (i) a European call option; (ii) a European put option; (iijian American call option; and (iv)an American put option. [4 marks] [2 marks] [3 marks] 3 marks) (b) A two-period binomial model is considered for a stock with the current price of $70. Over each of the next quarter periods, the price is expected to increase by 20% and decrease by 10%. The continuous interest rate is 4% pa. The exercise price is S60 and the time to expiry is half year Find the prices of the following options: (i) a European call option; (ii) a European put option; (iijian American call option; and (iv)an American put option. [4 marks] [2 marks] [3 marks] 3 marks)