Question: help ASAP! please solve the following! will upvote but please help! thank you in advance! 1. The possible stock prices for XYZ Corporation over the

help ASAP! please solve the following! will upvote but please help! thank you in advance!

1. The possible stock prices for XYZ Corporation over the next two years are: Year: 0S=50Pud=P=Pd=1Sd=60Pu=Pud=Sd=40Pdd=2Sdu=70Sdd=50Sdd=30 The risk-free interest rate is 10% per year and the stock pays no dividends. Consider a European put with an exercise price of $50 and a time to expiration of 2 years. a). Compute the value of the put at year 0 using the risk-neutral pricing approach. b). Construct the replication portfolio for the put from year 0 to year 1 . c). Construct a synthetic bond with the stock and put in year 0 and compute the implied interest rate. d). Consider a two-year American put with the same strike. Compute the early exercise premium of the American put

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