= 4, u = 2. (40 points) Consider a two-period binomial model with So 2, d=0.5, r = 0.25, where Sn is the price of the underlying stock at the end of period n, n = 1,2. Let M be a random variable denoting the minimum price occurrence over two periods: M = min{So, S1, S2}. Suppose that there is a derivative with payoff V = max(0, 3 M). a. (10 points) What are possible realizations of V? b.(15 points) Find the price of this derivative. c.(15 points) Find the delta hedge A(H) that occurs after the real- ization of first period's price.