2.Suppose that stock price move up by 46.34% or down by 26.83%. The current stock price is $41. You are computing the current value of a Europeancalloption with the strike price of $40 inone year.The risk free rate is APR 8% with continuous compounding.Compute the call option price in one-step binomial option pricing model.

Less than $1.0.

Larger than $1.0 but less than $3.0.

Larger than $3.0 but less than $6.0.

Larger than $6.0 but less than $9.0.

Larger than $9.0.