QUESTION 1 Using the two-step binomial option pricing model calculate the price for a 1 year American PUT option for a stock trading at $67.63 today, under the following market conditions: . The continuously compounded risk free rate is 4.4401%pa - The strike price is $90.00 - The volatility of the stock is 44.65%pa - The stock pays a dividend of $1 .75 at the end of the first 6 months - The stock pays a dividend of $1.93 at the end of the second 6 months ECON3003 BINOMIALJLdf a. To four decimal places, what is the value of \"u" (1 mark) h. To four decimal places, what is the value of \"d" (1 mark) c. To four decimal places, what is the proportional increase in price of the stock at each step in the binomial tree? (0.5 marks) d. To four decimal places, what is the proportional decrease in price of the stock at each step in the binomial tree? (0.5 marks) e. In percentrage terms to 2 decimal places, what is the probability that the stock increases in price? (1 mark) f. In percentage terms to 2 decimal places, what is the probability that the stock decreases in price? (1 mark) 9. To 4 decimal places, calculate the price of the stock at each node on the binomial tree both before and after rst dividend is paid i. Su (0.5 marks) ii. Su' {0.5 marks) iii. Sd (0.5 marks) iv. Sd' (0.5 marks)