Consider a binomial world in which the current stock price of 80 can either go up by 10 percent or down by 8 percent. The risk-free rate is 4.0 percent. Assume a two-period world and a call with an exercise price of 80. What is the current value of the call?

Select one: a. 8.00 b. 7.30 c. 11.13 d. 0.619 e. none of the choices