Please show all work and write concisely and neatly! Thanks!

The current price of Slytherin Corporation is $40. The price will increase by 25% or fall by 20% during each of the next two years. The company will pay a $2 dividend at the end of the first year if the stock price has risen. It will not pay any dividends at the end of the first year if the price has fallen. It will not pay any dividends at the end of second year. The annual interest rate is 10%. a) What is the value of a two-year European call with a strike price of $40 ? What if the option is American? b) What is the value of a two-year European put with a strike price of $40 ? What if the option is American