A stock price is currently $50. Over each of the next two three-month periods it is expected to go up by 5% or down by 5%. The risk-free interest rate is 5% per annum with continuous compounding. What is the value of a six-month European call option with a strike price of $48? Equations you may find helpful: p = (e^(rt)-d) / (u-d) f = e^(-rt) * (fu*p + fd*(1-p)) (required precision 0.01 +/- 0.01)