Exercise 1.3 - Binomial Model Consider the following economic inputs: S = 100; K=100; : 20%; Rf = 3%; o = Semi-annual time steps (4 Time Steps) T = 2 Year $2 Dividend paid in 6 months if S>100 $2.50 Dividend paid in 18 months if S>100 Calculate the following: European and American Value of a Put option? Options sensitivity to a 10% change in the stock, S = 110? = Options sensitivity to a 10% change in the risk-free rate R: 3.30%? Optional: Next change the option type to the following. Put option that is knocked-out if the stock price rises above 130 or if the stock price falls below 70. Calculate the same quantities as above using the binomial model