Consider a stock which trades for $50 (S0 = 50). Consider also a European call option with an exercise price of $55 which expires in one year. The risk-free rate is 5% c.c. Suppose that you calculate the risk-neutral upward step size to be 1.2363. What is the fair price of the option, based on a two-period binomial model? Choose the closest answer. Group of answer choices

3.37

4.28

5.23

7.01