Let 5 = $300, K = $300, 1= 10% risk - free interest rate , ( continuously compounding ) , T = 3 years , n = 3, three - period binomial tree , ${_...

Let S=$300, K=$300, r=10% risk-free interest rate, (continuously compounding), T=3 years, n=3, three-period binomial tree,

Let 5 = $300, K = $300, 1= 10% risk - free interest rate , ( continuously compounding ) ,T = 3 years , n = 3, three - period binomial tree , ${_ 6.5%6 , continuous dividend yield onthe stock , 4 = 1. 25, and d = 0. 7 .a ) Construct the binomial tree for the stock .b ) Compute the prices of American and European calls .c ) Compute the prices of American and European puts by using risk - neutralapproach .d ) What is your replicating portfolio today for European Call and Put optionsin part ( b ) and ( C ) ?"e ) What is your replicating portfolio today for American Call and Put options inpart ( b ) and ( c ) ?