Consider a Binomial Lattice model with the following parameters:

Number of periods:n= 4. Current stock price:S= 300. Up-factor:u= 1.1224. Down-factor:d= 0.8909. Interest rate per period: r= 0.0067 (i.e.R= 1.0067).

If a strike price is involved in the option, assume K = 310. Find the no-arbitrage price for each of the following options. Present all your intermediate calculations on a table or a tree diagram.

a. Bermudan Call Option: A call that can be exercised at period 2 or period 4.

b. American Chooser Option: At any period, you can choose whether to exercise. If you decide to exercise, you can choose to exercise either as exercising a call, or as exercising a put.