Problem 6 (Barrier options). (8 pts) Consider a two step binomial tree th the following parameters: So = 100, U = 0.1, D= -0.1 and R=0.03. Find the prices of a) (3 pts) A European knock-out call option with a strike price of 95 and a barrier of 90. b) (3 pts) A European knock-in call option with a strike price of 95 and a barrier of 90. c) (2 pts) Without using the binomial tree model, find the price of a European call option with a strike price 95 by your results in part (a) and (b). Problem 6 (Barrier options). (8 pts) Consider a two step binomial tree th the following parameters: So = 100, U = 0.1, D= -0.1 and R=0.03. Find the prices of a) (3 pts) A European knock-out call option with a strike price of 95 and a barrier of 90. b) (3 pts) A European knock-in call option with a strike price of 95 and a barrier of 90. c) (2 pts) Without using the binomial tree model, find the price of a European call option with a strike price 95 by your results in part (a) and (b)