The stock (underlying) moves as follows: So=54.65, S1,u=75.43, S1,d=46.95, S2,uu =98.59, S2,ud =53.08, S2, du=51.74, and S2,da=38.38. The CCIR is 1.13%. Consider the following call option with a look-back: The option expires at t=2. If it is exercised, the payoff is computed as the average price of the underlying from t=0 to t=2 (including) minus the strike price. Assume that the strike price is $63.97. Note: in some instances, the risk-neutral probabilities here can be bigger than 1 (just work with any number you find). This is exactly one problem when we assume numbers without any structure. We will discuss this in more detail when we talk about the Cox-Ross-Rubinstein model. The stock (underlying) moves as follows: So=54.65, S1,u=75.43, S1,d=46.95, S2,uu =98.59, S2,ud =53.08, S2, du=51.74, and S2,da=38.38. The CCIR is 1.13%. Consider the following call option with a look-back: The option expires at t=2. If it is exercised, the payoff is computed as the average price of the underlying from t=0 to t=2 (including) minus the strike price. Assume that the strike price is $63.97. Note: in some instances, the risk-neutral probabilities here can be bigger than 1 (just work with any number you find). This is exactly one problem when we assume numbers without any structure. We will discuss this in more detail when we talk about the Cox-Ross-Rubinstein model