"Given the following, answer the questions that follow: S= $100, K = $95, r = 8% (and continuously compounded), σ = 30%, δ= 0, T = 1 year, and n= 3. "

a. Confirm that the binomial option price for an American call option is $18.283. (Hint: There is no early exercise. Therefore, a European call would have the same price.)

b. Demonstrate that the binomial option price for a European put option is $5.979. Verify that put-call parity is satis?ed.

c. Confirm that the price of an American put is $6.678.

I only need help on parts B&C.

I need to know the formulas with the binomial tree for the puts.

Please show all steps and formulas, preferably in excel.