8. A stock price is $40 now. In one month it can go 10% up or down. In the second month it can go 10% up or down. The annual interest rate is 11% with continuous compounding. Use risk-free portfolios to determine the value of the a a) Two-month European call with strike price 40. b)Two-month European call with strike price 41 8. A stock price is $40 now. In one month it can go 10% up or down. In the second month it can go 10% up or down. The annual interest rate is 11% with continuous compounding. Use risk-free portfolios to determine the value of the a a) Two-month European call with strike price 40. b)Two-month European call with strike price 41