i. A Minnesota Mining and Manufacturing (3M) call option trades on the CBOE until June 23 (assume this is forty-five days away). The call has a strike price of $35 per share, offering 100 common stock shares upon exercise. The 3M stock currently trades at $36.50. Riskless debt (e.g., a US T-Bil1) maturing in forty-five days is priced to yield 4.5% (annualized). 25) a. assuming first that we are in a "binomial world", where 3M stock price will change three times (every 15 days) betweern today and expiration by +78 or -79 each time, use binomial OPM approaches to estimate "fundamental" price of the cal 1) draw (all or at least the upper right corner of) the binomial tree, determining possible expiration payoffs. 2) either directly calculate the PV of all positive (ITM) model (OPM) formula to calculate call price (C). (HINT: make sure everything is in 'per period, 15-day terms) expected payoff values: or use Binomial option pricing