Consider a European-style lookback put option. Assume the current share price is $20, the standard deviation of the return on the share (G) is 0.15, and the riskless rate is 7% per annum continuously compounded. 27.00 25.05 23.24 23.24 21.56 21.56 20 20 20 18.55 18.55 17.21 17.21 15.97 14.82 Node Time: 0.0000 0.2500 0.5000 0.7500 1.0000 The payoff in 12 months' time is the maximum stock price achieved during the life of the option less the terminal share price. That is: Payoff = max(0, Smax - ST) Required: Use a 4-step Binomial tree to approximate the current value of this lookback put option. In determining the maximum share price, exclude the initial stock price of $20. Consider a European-style lookback put option. Assume the current share price is $20, the standard deviation of the return on the share (G) is 0.15, and the riskless rate is 7% per annum continuously compounded. 27.00 25.05 23.24 23.24 21.56 21.56 20 20 20 18.55 18.55 17.21 17.21 15.97 14.82 Node Time: 0.0000 0.2500 0.5000 0.7500 1.0000 The payoff in 12 months' time is the maximum stock price achieved during the life of the option less the terminal share price. That is: Payoff = max(0, Smax - ST) Required: Use a 4-step Binomial tree to approximate the current value of this lookback put option. In determining the maximum share price, exclude the initial stock price of $20