Consider a binomial tree model for an underlying asset process {S: 0 n N} where So 4. Let Jus with probability p Sn+1 ds, with probability 1 - p where u = 2 and d 1/u. Assume that risk-free interest rate r = 25%, then price = (i) (12p) a European put option with strike K = 5 using N = 2 period binomial tree model (i.e., n = 0,1,2). (ii) (13p) an American put option with strike K (i.e., n = 0,1,2). 5 using N = 2 period binomial tree model