Question: Consider a two-period binomial tree model for a non-dividend paying stock. Assume the current price S0= 65, risk-free rate r = 5%, and volatility =

Consider a two-period binomial tree model for a non-dividend paying stock. Assume the current price S0= 65, risk-free rate r = 5%, and volatility = 20% a) Find the price of a European call on the stock with time to maturity T = 1, strike price K = 60.

The European call price: $( )(Keep two decimal places)

b) Find the price of an American put on the stock with time to maturity T = 1, strike price K = 60.

The American put price:( )(Keep two decimal places)

c) lf it's a European put with time to maturity T = 1, strike price K = 60. , would your result be the same with part b)?

( )(Enter "Yes" or "No")

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