A stock price is currently $100. It is known that it will be either $110 or $90 at the end of two month. The risk-free interest rate is 10% per annum with continuous compounding. Using no-arbitrage approach of binomial tree model, calculate the value of a two-month European call option with a strike price of $95. (4 marks) Required: Show your work step by step. For calculation question, you do not have to copy the formula, however you must show how you substitute the numbers into formula. For example, to calculate future value, an appropriate answer is: Face value 100*e^(0.1*1) = 110.52. = A stock price is currently $100. It is known that it will be either $110 or $90 at the end of two month. The risk-free interest rate is 10% per annum with continuous compounding. Using no-arbitrage approach of binomial tree model, calculate the value of a two-month European call option with a strike price of $95. (4 marks) Required: Show your work step by step. For calculation question, you do not have to copy the formula, however you must show how you substitute the numbers into formula. For example, to calculate future value, an appropriate answer is: Face value 100*e^(0.1*1) = 110.52. =