Question 3 (14 points) TPC Co. issues American warrants to the existing shareholders. The conversion ratio of the warrant to buy newly issued shares is 10:5. The life of the warrant is 6 months. The current TPC stock price is THB 32 and volatility is 20%. The risk-free rate is 6% per year. TPC announces to pay a dividend in the next three (3) months. 3.1 Find the warrant price with the Binomial option pricing model. Assume two (2) time-steps and the THB 1 dividend will be paid in the next three months. (10 points) 3.2 Suppose that this option is a European option. Do you think deltas of a warrant at t=0 calculated from the Binomial option pricing model and Black-Scholes-Merton model are the same? Please clarify (you do not have to calculate the delta). (4 points)