You are working with GA Finance advisor Ltd., which has been involving in financial consultancy to individuals. Option 203 is a 6-month American option that grants the holder the right to buy the underlying W Stock Index at a price agreed at 480. The W Stock Index is currently at 500 (Dividend yield of 3% and a volatility of 30%). Risk-free interest rate is 5% for all maturities. (a) Calculate the risk-neutral probability and explain why the actual statistical probability of stocks is not relevant for option valuation (b) For option 203. calculate its theoretical price by using a 3-step Binomial Model. Please support your result by a complete diagram