Question: Let S = $65, r = 6% (continuously compounded), d = 1%, s = 30%, T = 0.5. In this situation, the appropriate values of

Let S = $65, r = 6% (continuously compounded), d = 1%, s = 30%, T = 0.5. In this situation, the appropriate values of u and d are 1.17645 and 0.87153, respectively. Using a 2-step binomial tree, calculate the value of a $75-strike European put option. CORRECT ANSWER= $11.214. Please show all your work, NO EXCEL :)

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