A share of stock is currently worth $190 and has a volatility of 15%. The domestic risk-free interest rate is 2% per year and the stock pays a continuous dividend of 8% per year. Use a two-step binomial tree to derive a) the value of a six-month American call option written on 100 shares of stock with a strike price of $185 per share, and b) the position in shares of stock which will hedge a short position in the American call option today.