3) The volatility of a non-dividend-paying stock whose price is $35, is 15%. The risk-free rate is 4% per annum (continuously compounded) for all maturities. Use a two-step tree to calculate the value of a derivative that pays off (max(S 33,0)) where S, is the stock price in two months? 3) The volatility of a non-dividend-paying stock whose price is $35, is 15%. The risk-free rate is 4% per annum (continuously compounded) for all maturities. Use a two-step tree to calculate the value of a derivative that pays off (max(S 33,0)) where S, is the stock price in two months