Problem 2. Consider a financial market modeled by a 3 -period binomial tree. Suppose a stock price at time 0 is S0=$40, and u=1.2,d=0.85. The continuously compound interest rate is r=5%. The period is one year and the dividend yield is 0 . (d) Consider a knock-in European put option with expiration date T=3, strike price K=35, and knock-in level of 16 . Compute the price of this knock-in European put option