A stock price is currently 100. Over each of the next two six-month periods it is expected to go up by 10% (i.e. by a multiple factor of u = 1.1) or down by a multiple factor of d where d = 1/u. The risk-free interest rate is 8% per annum with continuous compounding. What is the value of a one-year European call option with a strike price of 100 using Binomial Model? 1