Question: Consider a two-period binomial tree model for a non-dividend paying stock. Assume the current price S065, risk-free fater = 5%, and volatility =20% a) Find

Consider a two-period binomial tree model for a non-dividend paying stock. Assume the current price S065, risk-free fater = 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: 4 (Keep two decimal places) c) If 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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