Question: The diagram below depicts a 4-step Binomial tree to model share price. 11128 91.11 74.59 74.59 61.07 61.07 50 50 50 40.94 40.94 33.52 33.52

The diagram below depicts a 4-step Binomial tree to model share price. 11128 91.11 74.59 74.59 61.07 61.07 50 50 50 40.94 40.94 33.52 33.52 27.44 22.47 A down-and-out barrier option has a barrier (H) set at $42. of the 6 paths that finish at $50, how many of them avoid the $42 barrier and therefore do not get knocked out? Select one: none O 1 O 2 O 3 04 O 5 O 6 o Impossible to answer unless we know p*
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