uestion 4 Recall Tutorial 9 Question 4, where we priced an exotic derivative whose payoff was the square of the expiry-date share price. In Tutorial 9, the derivative had six months before expiry and we employed a one-step Binomial tree. A delta-hedging approach was employed. Keep in mind that the Binomial approach only gives an approximate value, and with a 1-step tree, it will be pretty unreliable. We can get a more-accurate approximation if we use a bigger tree with more branches. Lets value the same derivative, this time using a multi-step Binomial tree and risk-neutral pricing. Assume that a stock is currently valued at $20. The standard deviation of its return is 0.40 per annum. The riskfree rate of interest is 4% p.a. continuously compounded. Like Tutorial 9, the exotic derivative has a payoff equal to the square of the share price at expiry. Required: Use a six-step Binomial tree and risk-neutral valuation to approximate the value of this exotic derivative. To draw the tree, perhaps use the spreadsheet call.xls available on Moodle.