The current price of the underlying stock is $25. We model the evolution of the stock price using a Binomial model. Over any four-month period, the stock price will rise by 18.91% and will fall by 15.90%, as illustrated in the figure below. The risk-free rate of interest is 6% p.a. compounded continuously. 42.03 35.35 29.73 29.73 25 25) 21.02 21.02 17.68 14.87 Node Time: 0.0000 0.3333 0.6667 1.0000 An exotic derivative with one year to maturity is written on this stock. The payoff structure of the derivative is specified as: 10, if ST > 35 Payoff = 6, if 20 35 Payoff = 6, if 20