11. (Pay-later options) Pay-later oplions are options for which the buyer is not required to pay the premium up front (i e , at the time that the contiact is entered into) At cxpiration, the holder of a pay-later option nust exercise the option if it is in the money, in which case he pays lhe premium at lhat time Otherwise the option is left unexercised and no premium is paid The stock of the CCC Corporation is currently valued at S12 and is assumed to possess a the properties of geometric Brownian motion It has an expected annual return of 15%, an annual volatility of 20%, and the annual risk-free rate is 10% (a) Using a binomial lattice, determine the price of a call option on CCC stock maturing in 10 months' ime with a strike price of S14 (Let lhe distance betwcen nodes on your trce be monlh in length ) same parameters as thecall in part (a) why not? Under what conditions would you prefer to hold which option? (b) Using a similar methodology, determine the premium for a pay-later call with all the () Compare your answers to parts a and (b Do the answers differ; if so why, if not