(15 points) Using the binomial option pricing model, calculate the value of the call if S = $95, X = 80, and the stock can either be worth $140 or $60 one year from now. Assume that the risk free rate is 10%. <- - - - -this is just for context.

#2 - Without having to perform the calculation if the stock prices one year from now were $90 and $70, would the value of the call be greater or less than the previous value? Explain.

Please answer #2.