(c) 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 6% with continuous compounding. The payoff function of an American option maturing in 2 years written on the stock is g(S) = 2(110 S)+, S 110. Use the four-step binomial tree model to determine the present value of the American option. [5 marks] (c) 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 6% with continuous compounding. The payoff function of an American option maturing in 2 years written on the stock is g(S) = 2(110 S)+, S 110. Use the four-step binomial tree model to determine the present value of the American option. [5 marks]