Exercise 1.3 - Binomial Model Consider the following economic inputs: 5 = 100; K=100; R. = 3%; o = 20%; T = 2 Year Semi-annual time steps (4 Time Steps) $2 Dividend paid in 6 months if S>100 52.50 Dividend paid in 18 months if S>100 Calculate the following: c European and American Value of a Put option? 0 Options sensitivity to a 10% change in the stock, 5 = 110? 0 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