Question: 3. Suppose two-period (years) bonus enhanced note with two strike prices of K1=$100, and K2= $140, whose underlying stock price of $100 with a degree

3. Suppose two-period (years) bonus enhanced note with two strike prices of K1=$100, and K2= $140, whose underlying stock price of $100 with a degree of up movement of 30% and down movement of 10% for each year. The risk-free annual rate is 10% and the constant bonus is $40. Please find the fair price of bonus enhanced note.

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