a. A stock price is currently K100. Over each of the next two six-month periods it is expected to go up by 10% or down by 10%. The risk-free interest rate is 8% per annum with continuous compounding. What are some of the assumptions considered under Binomial Option Price Calculations (2 marks) b. What is the value of a one-year European call option with a strike price of K100 (6 marks) How is time Value affected under a European style and American style option (2 marks) C