A stock is currently traded at $60. The standard deviation of the stock return is 30% per annum. The riskless interest rate is 5% per annum. The terminal payoff of the derivative is specified as: Payoff = 3 ST + 10

(iii) Suppose that the derivative is a normal European style option with one year remaining (i.e., it does not have the barrier). Without constructing a binomial tree, what is the price of this European option? Justify your answers.