Consider a binomial world in which the current stock price of 200 can cither go up by 10 percent or down by 10 percent. The risk-free rate is 5 percent. Assume a two-period world. Answer the following question about a Put with an exercise price of 190. 2) What will be the price of the stock and value of a European Put at time period 0, 1 and 2? (10 b) What will be the hedge ratio at time 0 and time 1 and what will be the trading strategy at time O based on the hedge ratio? (5 points) c) Show how to create a riskless hedge at time 0 and then show it with an example that the hedge works at time period 1? (5 points) d) Show what adjustment you will make at time period 1 for the hedge portfolio both when the stock price goes up and down? (10 points) c) Now assume that at the end of time period 1 the stock pays a dividend of $20 compure the value of the Put at time 0 if the Put is American. (10 points)