Question: 5. Consider the 3-period binomial model with So 100, u 2, dand r-1. (a) What is the current price of a lookback call option with

5. Consider the 3-period binomial model with So 100, u 2,

5. Consider the 3-period binomial model with So 100, u 2, dand r-1. (a) What is the current price of a lookback call option with a strike price of $100 that pays off (at time three) V3- max Sn - 100 Sn3 (b) What is the time-zero price of a lookback put option with a strike price of $100 that pays off (at time three) V 100-min Sn OSnK3 (c) What is the time-zero price of an Asian call option with a strike price of S100 whose payoff (at time three) is V- Ys - 100 4 - -0 Sk is the sum of stock prices between time 0 and time 3

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