3. You are given: A non-dividend-paying stock is currently selling for $100. . The stock's volatility is 30% per annum. The risk free interest rate is 8% with continuous compounding, The payoff function of a 1-year American option written on the stock is 9(S) = 3(100-S), S 100 , (S-100)*, S > 100. Use the three-step binomial tree model to determine the value of the option. [11 marks)