Binomial-tree option pricing. Q:Whatisthepriceofacalloptionthatexpiresin3 months, with strike X=$110? The option is written on a non-dividend paying stock that currently trades for $100, and can move every month either up by 5% or down by 5% (u=1.05 and d=0.95). The risk-free rate is 6% ACR. Use a three-step binomial tree!