Consider a stock in a binary one-period model with value 100 USD at time t = 0. We assume that the value increases by 7 percent in the up-state and decreases with 3 percent in the down state at t = 1. The risk free interest rate r is 5 percent. (i) Calculate the risk neutral probability distribution. (ii) Calculate the arbitrage free price c of a European call option written on this stock with strike price K = 67 USD