Exercise: (Binomial and Continuous Model.) Consider a binomial model of a risky asset with the parameters r = 0.06, u = 0.059, d = -0.0562, S0 = 100, T = 1, ?t = 1/12. Note that u and d are monthly effective rates of return and r is the annual effective risk-free interest rate. (1) Determine the price of a European put option with strike price X = 98 on the above non-dividend paying asset at time 0 and find x(1),y(1), i.e., the number of shares of the stock and risk-free asset needed at time 0 to replicate the European option over the first time-step