3. (Two-period binomial model) Consider a two-period binomial model for a stock price such that So = 80, u = 2, d=1/4, and r=0.5. (i) Find the value at time 0 of a derivative security with payoff at time 2 given with max{S: t = 0,1,2} - min{S: t = 0,1,2}, where S, denotes the stock price at times t = 0,1,2. (ii) Find a replicating portfolio at time 0 for the derivative security introduced in (i)