Question: Let S = $100, K = $95, r =8% (continuously compounded), = 30%, = 0. T = 1 year, and n = 3 (that is,

Let S = $100, K = $95, r =8% (continuously compounded), = 30%, = 0. T = 1 year, and n = 3 (that is, 3 periods). a. Construct the binomial tree for a European call option. Provide the option premium, , and B, for each node . b. Construct the binomial tree for a European put option. Provide the option premium, , and B, for each node . Please show how to input in Microsoft Excel

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