Suppose that Stock XYZ is currently trading at $50 and does not pay any dividends. Using a binomial tree with two periods, we would like to price a European down-and-in call option written on this stock with a strike price of $40, barrier level of $48 and expiration date in three months. Assume that annual continuously compounded interest rate is 5% and the volatility of the stock is 20% per year. What is the price of the barrier option? 7.28 9.45 1.01 3.22 Suppose that Stock XYZ is currently trading at $50 and does not pay any dividends. Using a binomial tree with two periods, we would like to price a European down-and-in call option written on this stock with a strike price of $40, barrier level of $48 and expiration date in three months. Assume that annual continuously compounded interest rate is 5% and the volatility of the stock is 20% per year. What is the price of the barrier option? 7.28 9.45 1.01 3.22