Answered in excel with formulas

Problem 6. A stock price of a non-dividend paying stock is currently $30. Use a two-step tree to value a European call option on the stock with a strike price of $32 that expires in 6 months. Each step is 3 months, the risk free rate is 8% per annum with continuous compounding. What is the European call option price when u = 1.1 and d = 0.9? Problem 6. A stock price of a non-dividend paying stock is currently $30. Use a two-step tree to value a European call option on the stock with a strike price of $32 that expires in 6 months. Each step is 3 months, the risk free rate is 8% per annum with continuous compounding. What is the European call option price when u = 1.1 and d = 0.9