14. Suppose you are given a two-period binomial tree with the following parameters: S = 100, R = 1.01, u = 1.04, and d = 0.96. Consider a two-period Asian call option where the averaging is done over all three prices observed, i.e., the initial price, the price after one period, and the price after two periods.
(a) Suppose the option is an average-price option with a strike of 100. What is its initial price?
(b) Suppose the option is an average-strike option. What is its initial price?
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