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Two-period binomial tree. A stock has a price of $45, and a standard deviation of...

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Two-period binomial tree. A stock has a price of $45, and a standard deviation of 28%. The continuous risk-free rate is 10%. There are European and American call and put options with a strike price of $45 and time to expiration of 1 years written on the stock. Using a two-step recombining CRR binomial tree, answer the following: a. What is the risk-neutral probability of the stock price going up in a single step? Riound your answer to two decimals b. What is the theoretical value of the European call? 5 Rhound your answer to the nearest cent c. What is the theoretical value of the European put? Ficuid youf answar to the neafest cent d. What is the theoretical value of the American put?? Round your answes to the nearest cent

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