Both questions if possible thanks:

a) A stock price is currently $40. Over each of the next two three-month periods the stock price is expected to increase by 8% or decrease by 5.5%. The risk free interest rate is 4% per annum with continuous compounding. What is the value of a six-month European call option with a strike price of $42?

b) suppose that a trader sells 10,000 European call options. How many shares of the stock are required to hedge the position for the first 3 month period?