A stock price is currently $50. It is knows that at the end of six month, it will be either $55 or $35. The risk-free rate of interest with continuous compounding is 6% per annum. Calculate the value of a three-month European call option on the stock with an exercise price of $48, using binomial model and (a) no-arbitrage argument, and (b) risk-neutral valuation approach.
ANSWER WRITTEN OUT, NOT EXCEL PLEASE