. Binomial Model of Option Pricing: Let us say that the stock price of an stock is $75 today, at t = 0. Tomorrow, at t = 1, the price can be either 90$ or 60$. If the price is 90$ at t = 1, the prices can be 95$ or 85$ at t = 2. In the other case, if the price is 60$ 2 at t = 1, the prices can be 65$ or 55$ at t = 2. What is the premium on a call option that expires in 2 periods. The exercise price is 80$. Assume risk-free rate is 5%.