3) An Melanesia option pays the maximum of either 0 or the difference between the final stock price and the minimum stock price along the relevant price path. For example, assume that the price path is 100, 80, 100. The minimum price is 80, the final price is 100, and the option would pay 20. If the price path is 100, 125, 100, both the minimum and the final price are 100, and the option would pay 0. Please note that option values at a particular node will vary based on the path the underlying stock took to reach that point. So given all this, you have a Melanesia option that expires in 2 periods where the stock price in period 0 is 50. The stock has an up move equal to 1.15. The interest rate is 1/9. What is the value of your option today in period 0