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For A 6-month European call option on a stock, you are given: (1) The stock price is 150. (2) The strike price is 130. (3)

For A 6-month European call option on a stock, you are given:

(1) The stock price is 150.

(2) The strike price is 130.

(3) u=1.3u=1.3 and d=0.7d=0.7.

(4) The continuously compounded risk-free rate is 6%.

(5) There are no dividends.

The option is modeled with a 2-period binomial tree.

Determine the option premium.

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