2. A three-year European call option on a $100 stock (s) with $100 exercise price (K). Uncertainty is modeled by o=22.31% historical volatility in continuous time. The riskless interest rate is 5% (r). What is the arbitrary price of the call option? (Note: You should be able to do longer periods such as 4 years, 5 years, etc.) Setting: s= 100, r=0.05, K = 100, T = 3, u and d need to be calculated (continuous times). Call option value = Max (ST-K, 0) and Call option value > 0 (in the money) when ST > K. Step 1. Find the up move and down move from historical volatility (t = 1 year). Step 2. Use forward induction to find stock price process for 3 periods (9 nodes total). Step 3. Find the potential call option values at the 4 terminal nodes at t = 3. Step 4. Find the risk-neutral probabilities for arbitrage-free environment. Step 5. Use backward induction to find call option value at A, B, C, D, E, then F (t = 0). Note: Please show all the math. Pay attention to discounting process (using