Calculate the value of a call option on the stock in the previous problem with an exercise

Question:

Calculate the value of a call option on the stock in the previous problem with an exercise price of 110. Verify that the put-call parity theorem is satisfied by your answers to Problems 9 and 10. (Do not use continuous to calculate the present value of X in this example because we are using a two-state model here, not a continuous-time Black-Scholes model.)

Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...