2. (16 marks) Consider a 2-year Binomial Model for a stock is given by: Time 0 Time 1 Time 2 uS. uso So So dSo d? So With So = 100, u = 1.1 and d= free rate per period of r = 0.01. . A risk free bond worth $100 at time 0 earns a risk > (e) (3 marks) Assume the stock pays a one time discrete cash dividend of D = $10 at time t = 1. Find the price of an European call option expiring at time 2 with strike K = 90