Question: Consider a two-period binomial tree model with u = 1.05 and d = 0.90. Suppose the per-period interest rate is 2%. Suppose the initial stock

Consider a two-period binomial tree model with u = 1.05 and d = 0.90. Suppose the per-period interest rate is 2%. Suppose the initial stock price is $100. Consider $95-strike call and put options on this stock. Which of the following statement is false based on above information?

The put premium is $12.01

Possible payoffs of a call at the end of the two periods are $14.25, $0, and $0

Possible payoffs of a put at the end of the two periods are $14, $0.5, and $0

The call premium is $10.28

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