2. This question tests your understanding of binomial option pricing. The current price of a stock is $100. The tree is given below. The monthly (discretely compounded) risk-free return is 10% per period. 190 100 70 (a) Find the current price of a European call with a strike price of $124. (b) Consider an options trader who has written 100 call options on the stock with exercise price of $124. How many shares of the stock should he hold at time 0 in order to hedge his options position