Suppose = $100, = $95, = 8% (continuously compounded), = 1, = 30%, and = 5%. Explicitly construct an eight-period binomial tree using the Cox-RossRubinstein expressions for u and d: Compute the...

Suppose
= $100,

= $95,
= 8% (continuously compounded),
= 1,

= 30%, and

= 5%. Explicitly construct an eight-period binomial tree using the Cox-RossRubinstein expressions for u and d:

Compute the prices of European and American calls and puts.