Question 3. Currency Option Pricing with Binomial Model (10 marks) Onjanuary 11, the spot exchange rate for the U.S. dollar 's 80.70 per Caned an pollan. In one Year's : an dolar is expected to appreciate by 20 percent of depreciate by 15 European put option on U.S.dol ars expiring In one year with an .39 CNDE USS, that Is currently selling for s price of $2.98. Each put potong holder the right to sell 10 090 U.S. dollars. The current one fi Year Canadian Treasury Bill rate Is 2 percent, while the one year U.S. Treasury Bill rate Is 3 percent, both compounded annually. Theat the CanBolan O0 87 85 the domestic currency. What Is the estimated value of this put option by using the binomial model