For the two-period (each period is 6 months) binomial option pricing model, 0=50, , and the annual interest rate with semiannual compounding is 6%. =52.5, =48.0Calculate the probability (p) and the stock price moving up in one time step? ANSWER IS 0.7777

ANSWER THIS QUESTION: Continuing with the previous problem, what is the value of a call option with strike price $50 and time-to-maturity = year.

(a) $1.89*(b) $1.83(c) $1.94(d) None of the above(e) Cannot be calculated