For demonstration purposes you decided to use the binomial option pricing to find the price of a call option of the companys stock. The current price of the stock is $40. In 1 year, you expect the price of the stock to be either $60 or $30. The annual risk-free rate is 5%. Calculate the price of the call option if the exercise price of the stock is $42 and expires in 1 year. (Use daily compounding). Note: Please do not post the same question that already in chegg. Please help solve this question step by step and in clear way to understand.