8. Let S = ($100), = 30%, r = 0.08, t = 1, and =

8. Let S = \($100\), σ = 30%, r = 0.08, t = 1, and δ = 0. Suppose the true expected return on the stock is 15%. Set n = 10. Compute European call prices, , and B for strikes of \($70\), \($80\), \($90\), \($100\), \($110\), \($120\), and \($130\). For each strike, compute the expected return on the option. What effect does the strike have on the option’s expected return?