Let Sn be the price of a stock at time n. The payoff V2 of a European security is: V2=max(S0,S1,S2) Today's stock price is equal to S0=$40. At each time the stock price can either go up or down. If it goes up, it is multiplied by u=1.1. If it goes down, it is multiplied by d=1/u. The time-step is t=1, and the risk-free interest rate is equal to 0%. a) Show that Var[S1S0)]=2S02, with =0.095 b) Use the binomial model to calculate the value V0 of this European security. Be careful: the model is path-dependent, i.e., V2(HT)=V2(TH)