We consider a binomial model with T = 3 periods, Fu = 2, Fd = , p = 0.55, per period, and Xo interest rate r = - 4 Gils. We look at an American put option with strike K = 4 Gils and maturity T. (a) Compute the initial value of this option. Give your answer with 2 decimal digits (e.g. 3.14). Note : you are not required to work with literal formulas in this question. (b) Suppose that we are in the scenario w = udd. When will an optimally- acting holder of this option exercise it? (c) Suppose that we are in the scenario w = uud. When will an optimally- acting holder of this option exercise it? We consider a binomial model with T = 3 periods, Fu = 2, Fd = , p = 0.55, per period, and Xo interest rate r = - 4 Gils. We look at an American put option with strike K = 4 Gils and maturity T. (a) Compute the initial value of this option. Give your answer with 2 decimal digits (e.g. 3.14). Note : you are not required to work with literal formulas in this question. (b) Suppose that we are in the scenario w = udd. When will an optimally- acting holder of this option exercise it? (c) Suppose that we are in the scenario w = uud. When will an optimally- acting holder of this option exercise it