(b) An Asian option is a path-dependent option where the payoff is calculated using the average asset value for each path w. So an Asian call option with strike price K has a payoff function given by, 1 ACT,w) = max ---{{c+$}} ) ->-:0 T +1 t=0 where St(w) denotes the asset price at time t for a given path w. Derive the value of a two year Asian call option with strike price K $2 written on an asset S with prices in dollars at each time and for each path given in the table below. Assume all interest rates are zero. S(0) S(ly) S(2y) 4 6 8 W1 2 4 6 Oo oo W3 4 4 3 3 5 1 (b) An Asian option is a path-dependent option where the payoff is calculated using the average asset value for each path w. So an Asian call option with strike price K has a payoff function given by, 1 ACT,w) = max ---{{c+$}} ) ->-:0 T +1 t=0 where St(w) denotes the asset price at time t for a given path w. Derive the value of a two year Asian call option with strike price K $2 written on an asset S with prices in dollars at each time and for each path given in the table below. Assume all interest rates are zero. S(0) S(ly) S(2y) 4 6 8 W1 2 4 6 Oo oo W3 4 4 3 3 5 1