1) A Maldives option pays the maximum price on the price path minus the final price. For example, if the price path is 200, 220, 242, the maximum price is 242, and the option pays 242-242=0. If, on the other hand, the price path is 200, 220, 200, the maximum price is 220 and the option pays 20. Note that the value of this option depends on the path of prices. Today the price of a stock is 150. The up move is u=1.2, and the interest rate is 1/19. How much is a Maldives option on this stock expiring in two periods worth today? 1) A Maldives option pays the maximum price on the price path minus the final price. For example, if the price path is 200, 220, 242, the maximum price is 242, and the option pays 242-242=0. If, on the other hand, the price path is 200, 220, 200, the maximum price is 220 and the option pays 20. Note that the value of this option depends on the path of prices. Today the price of a stock is 150. The up move is u=1.2, and the interest rate is 1/19. How much is a Maldives option on this stock expiring in two periods worth today