Question: consider the following binomial option pricing problem. this option has two periods to go before expiring. its stock price is $65 and its exercise price

consider the following binomial option pricing problem. this option has two periods to go before expiring. its stock price is $65 and its exercise price is $60. the risk-free rate is 5%, the value of u is 1.20% and the value of the d is 0.95x. the stock pays dividends at the end of the first period at the rate of 3%. construct the 2-period binomial tree model and find the value of both the call and put premiums

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