A stock is trading at $300 with a volatility of 0.5. The risk free rate is 5%. The stock does not pay dividends. Create a 2-step tree for the stock with a time step of 1 year. What is the price of a derivative contract that pays you$300 if the stock is above $300 and pays $20 if the stock is below (or equal to) $300.
O $82.38
O $303.73
O $56.34
O $64.23
