Thanks

2. Consider the two-period binomial model with a non-dividend paying stock S, where S0=4,u=2,d=0.5,r=0.25. Your boss has asked you to price an Asian call option which expires at time N=2 and has strike K=4. The payoff of the Asian call option at N is VN(Call,Asian):=max{(N+11i=0NSi)K,0}. - Do you use a node, or path-based, approach? Please explain. (10 pts) - Compute the pair (V0(Call,Asian),0). (40 pts )