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A non-dividend paying stock currently trades at a price of $25. The annually compounded risk-free rate is 2%. European and American call and put options,

A non-dividend paying stock currently trades at a price of $25.

The annually compounded risk-free rate is 2%.

European and American call and put options, expiration of 270 days have a strike price of $17.

The stock could go 6% up, The stock could go 4% down in each period of length 70 days each.

Using the two-period binomial options pricing model, what is the risk-neutral probability and value of the European call option?

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