The stock price is currently $90, it has a volatility of 30% p.a., and the risk-free rate with continuous compounding is 10% p.a. A 1-year "powered" European call option on a stock has an exercise price of K = $100, and pays off f_T = (S_T - K)^2. (i) Construct a 3-step Cox-Ross-Rubinstein binomial tree and value the option. (ii) Assume the Black-Scholes model for the stock and value the derivative using risk-neutral valuation. [You will need to use the formula f_0 = (E(f_T)).] (iii) Explain any discrepancy you observe. The stock price is currently $90, it has a volatility of 30% p.a., and the risk-free rate with continuous compounding is 10% p.a. A 1-year "powered" European call option on a stock has an exercise price of K = $100, and pays off f_T = (S_T - K)^2. (i) Construct a 3-step Cox-Ross-Rubinstein binomial tree and value the option. (ii) Assume the Black-Scholes model for the stock and value the derivative using risk-neutral valuation. [You will need to use the formula f_0 = (E(f_T)).] (iii) Explain any discrepancy you observe