1. Consider the two-period binomial model with a non-dividend paying stock S, where So = 4, u = 2, d = 0.5, r = 0.25. Your boss has asked you to price an MaxCall (Lookback) option which expires at time N = 2 and has strike K = 4. The payoff of the MaxCall option at N is V(Call, Max) := max N {(max S,) - K,0}. (1) Do you use a node, or path-based, approach? Please explain. (10 pts) Compute the pair (v (Call,Max), Ao). (40 pts)