. The current price of Pineapple stock is $50. In each of the next two years, this stock price can either go up by $12 or go down by $7. The stock pays no dividends. The oneyear risk-free interest rate is 5% and will remain constant.

i. Using the Binomial Model, calculate the price of a two-year put option on Pineapple stock with a strike price of $50.

ii. Using the Binomial Model, calculate the price of a two-year call option on Pineapple stock with a strike price of $51.