Calculate the price of a European style call option with 6 months left to maturity assuming an annual risk-free rate of 3.5% and a non-dividend paying stock which can change in price by a factor of 1.1 or 0.9 every 3 months. The current price of the underlying asset is $44 and the option strike price is $42.50 (1 mark) Re-calculate the price of the option in part a assuming that for the second three month period, the price change factors are 1.2 and 0.85 . (1 mark)