Question: please show all work for solutions. need help studying for test. 1. A stock's price is $40. Over each of the next two three month

please show all work for solutions. need help studying for test.

1. A stock's price is $40. Over each of the next two three month periods it is expected to go up or down by 20%. The risk free rate is 6%p.a. a What should be the current price of a 6-month European style put option with a strike price of SA5? b. What should be the current price of a 6 -month American style put option with a strike price of S4S? c. What should be the current price of a 6 -month European style call option with a strike price of 535 ? d. What should be the current price of a 6-month A merican style call option with a strike price of $35

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