Exercises 4.114.14 use the data: S(0, 0) = 90, r = 8%, T = 1, N = 10, t = 0.1, and various choices for . Exercise 4.11. Produce a spreadsheet to price the American put option with strike price K = 90. The answer should be $3.08 (to the nearest cent). Now modify inputs for S, r, K = 90 and produce a modified spreadsheet. Now compute the value of this same American put option when = 20%, 25%, and find the value of correct to four significant figures so that the price of the American put option is $5.00. Calculate the European put option for the same data and various choices of . Also compute the early exercise premia in these cases (the difference between the American put value and the European put value). Exercise 4.11. There is an error in the original problem. To fix it, use K=S=90 throughout insteadofK=100. Then find sigma so that P(0)=3.08 and another sigma so that P(0)=5.00.