2. Consider a 2-period binomial model of pricing European call option. Let the initial stock price be So= 10 per share, u = 2 be up factor, d= 0.5 be down factor, r = 0.25 be rate of interest compounding per time period, K = 14 be strike price. (a) Find the initial price of the European call option. (b) Find the delta-hedging portfolio process. (c) Use the put-call parity to determine the initial price of the European put option.