You have been asked to value European types of stocks in your new job. The stock is currently trading at 25.45 Ringgits per share. The 8-month nominal risk free ringgit interest rate is 5.25.

You have decided to use the binomial option pricing model to value the options.

Since you need the annual volatility, you collected the past four years worth of weekly returns, based on these weekly returns, you computed the sample standard deviation of weekly returns and found out to be 2.5%

1. Find the value of the 8-month call option with exercise or strike price equal to 25 ringgit.
2. You have also been asked to value an exotic option that will pay 15 ringgits in 8 months. If the stock price in 8 months is higher than 25.50 or lower than 22.50 ringgit per share. There are no other payments associated with the option. Find the value of the exotic option

please do not use excel.