Consider an one-year European call on a stock with strike price$50. The current stock price is$50 and weassume that there are three time steps for the price to change until the option maturity. In each step, thestock price can move either up or down by 7%. The risk-free interest rate is 2% per annum. Currently, weare in time 0. What is the risk-neutral probability that the option will be exercised?