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 percent. Assume a two-period world. Compute the price of the European Call. Also show in each period the hedge ratio and that the portfolio is earning a risk-free rate of return. Make sure that you show all the changes that you have to do with the hedge portfolio at the end of period 1.