The stock price follows the SDE dSt = Stdt +?StdWt , where t is the time in months, {Wt} is a standard Brownian motion, S0 = 10, = 0.01, ? = 0.01. The riskless interest rate is r = 0.005. The following option is available: at any time you may purchase one share of the stock for price K = 10, or you may sell one unit of stock for price K = 10. The option expires at time T = 3. Calculate the price V(t, x) of the option at t = 1, as a function of x = S1. Explain your method. You will have to do it numerically, by assuming some time step ? and approximating the stock price process on a binary tree. You can use MATLAB if you wish.