Compute the price of an American call option on the same ZCB of the previous three questions. The option has expirationt=6and strike=80.

Questions 1-6should be answered by building ann=10-period binomial model for the short-rate,ri,j. The lattice parameters are:r0,0=5%,u=1.1,d=0.9andq=1q=1/2.

face value is 100 and the ZCB expires at t= 10.