QUESTION NO, 138 A two vear tree for a share of stock in ABC Ltd., is as follows: Consider a two years American call option on the stock of ABC Ltd., with a strike price of 98. The current pric of the stock is 100. Risk free return is 5 per cent per annum with a continuous compounding and e0.05=1.0512 ) Assume two time periods of one year each. Using the Binomial Model, Calculate: (i) The probability of price moving up and down; (iii) Expected pay offs at each nodes i.e. N1, N2 and N3 (round off upto 2 decimal points)