Suppose in each period, the stock price can rise by 20% with probability 0.60 or fall by 20% with probability 0.40 . The current stock price is $100, and the exercise price of the employee stock option also is $100. The option has a two-period maturity. If utility of final wealth (w) of an executive exhibits constant relative risk aversion, y, so that U(w)=w1/1 where y=1.5 and w=35, what will be the exercise decision of the executive at each node? What will be the final ESO value? (Assume that vesting period is over, and for simplicity, risk-free rate of return is zero) (10p)