7.2. Consider a stock in the 3-period binomial model with the following statistics: So = 10, u = 1.5, d = 0.5, r = 0.1 Define a security's intrinsic value process by Go =0 and G, =0.5 (S, + S, 1) for n > 0. (a) Write out the intrinsic value process (G,)" ; on a tree, and prove that the security is path dependent according to the official definition. Note: this means that you need to show that there is no function g : R -> R such that for all n and for all w we have g (S, (w)) = Gr(w).(b) Determine the value process (Ve), , of the security using the (simplified) pricing algo- rithm for American securities and write it out on a second tree