Question 2 - 30 Points A stock price is currently worth $20. It is known that at the end of a 6 month period it is expected to go up by 8% or down by 5%. The risk-free interest rate is 4% per annum with continuous compounding. Use a two-step tree to calculate the value of a 1-year American exotic option whose payoff payoff = max ($ + ST-4:0). State in which node the option is early exercised