The current price of the underlying stock is $25. We model the evolution of the stock price using a Binomial model. Over any three-month period, the stock price will rise by 22.14% and will fall by 18.13%. The risk-free rate of interest is 6% p.a. compounded continuously. The stock price movements over the next one year are depicted by the following Binomial tree: The above information is useful to answer the following questions a) i. Use the Binomial method to price a derivative with a terminal payoff of max(STX,0), where X=22 and ST is the terminal share price. This derivative is knocked in only if any of the quarterly stock prices hit the barrier of H=26. Use the Binomial method to price the above derivative again, but now, assuming the derivative is knocked out if any of the quarterly stock prices hit the barrier of H=26. The current price of the underlying stock is $25. We model the evolution of the stock price using a Binomial model. Over any three-month period, the stock price will rise by 22.14% and will fall by 18.13%. The risk-free rate of interest is 6% p.a. compounded continuously. The stock price movements over the next one year are depicted by the following Binomial tree: The above information is useful to answer the following questions a) i. Use the Binomial method to price a derivative with a terminal payoff of max(STX,0), where X=22 and ST is the terminal share price. This derivative is knocked in only if any of the quarterly stock prices hit the barrier of H=26. Use the Binomial method to price the above derivative again, but now, assuming the derivative is knocked out if any of the quarterly stock prices hit the barrier of H=26