Question 13 Using a one-period binomial tree, value the option mentioned by Joe Aston in the Not yet saved previous question's quote. Assume that Magellan pays no dividends, the expiry date is Marked out of exactly 2 years away, the risk free rate is 3% pa as a continuously compounded rate and 3.00 the stock price will either rise to $40.87(=17.25exp(0.6120.5)) or fall to $7.28 Remove flag (=17.25exp(0.6120.5)). The value of this 2 year European option based on a one-period binomial tree is: Select one: a. \$o b. $1.82 C. $5.87 d. $7.28 e. $33.59