PROBLEM 4 points): Use the "up-down" binomial pricing method to derive call option values for the following conditions: A. S = 60, K 64, r = 5%, t = .25, u = 1.5, d = .5 and there is only one step or "jump" before expiration. Assume this is a European option. Show your work. (1 point) B. S-60, K = 64, r = 500, t = .25, u = 1.5, d .5 and there are two steps or "jumps" before expiration. Assume this is a European option. Show your work. (3 points) PROBLEM2(6points: Usethe "up-down" binomial pricing method to derive put option values for the following conditions: A. s-60, K-64, r-500, t = .25, u 1.5, d = .5 and there is only one step or "jump before expiration. Assume this is a European option. Show your work. Then check your put value using put-call parity and the call value from Problem 1, Part A. (2 points) B. S-60, K-64, r-500, t-.25, u-1.5, d-.5 and there are two steps or "jumps" before expiration. Assume this is a European option. Show vour work. Then check your put value using put-call parity and the call value from Problem 1, Part B. (4 points) PROBLEM 4 points): Use the "up-down" binomial pricing method to derive call option values for the following conditions: A. S = 60, K 64, r = 5%, t = .25, u = 1.5, d = .5 and there is only one step or "jump" before expiration. Assume this is a European option. Show your work. (1 point) B. S-60, K = 64, r = 500, t = .25, u = 1.5, d .5 and there are two steps or "jumps" before expiration. Assume this is a European option. Show your work. (3 points) PROBLEM2(6points: Usethe "up-down" binomial pricing method to derive put option values for the following conditions: A. s-60, K-64, r-500, t = .25, u 1.5, d = .5 and there is only one step or "jump before expiration. Assume this is a European option. Show your work. Then check your put value using put-call parity and the call value from Problem 1, Part A. (2 points) B. S-60, K-64, r-500, t-.25, u-1.5, d-.5 and there are two steps or "jumps" before expiration. Assume this is a European option. Show vour work. Then check your put value using put-call parity and the call value from Problem 1, Part B. (4 points)