Consider a binomial model with u = 1.03, d = 10,8 = 0 and interest rate r = 2% a year, compounded continuously. Using T = 1 maturity of one year, initial stock price S(0) = 100 and N = 4 periods: a) find the premium of the European Put PE (K) for K = 95, 100, 105, 110, 115. You're encouraged to use a computer to do this faster. Create a plot of KP(K). b) Write down a mathematical formula for the function KP(K). Hint: this is a piecewise function. = c) Compute the price of the European Call with K parity holds. 100 and verify that Put-Call