: Consider a stock with current price S=100 and standard deviation of annual returns =30%. Stock does not pay any dividends. Consider a 1-year European call option on this stock with strike price of $95. The risk-free interest rate is 8%.

1-Using Excel, find the value of this option using Cox-Ross-Rubenstein 10-step binomial option pricing model.

2-Using Excel or any other methods (except option price calculators), find the value of this option using Black-Scholes model.