1. Given: Today's stock price is 27. One month from now, the stock price will be either 23 or 31. If it is 31, then the following month the stock price will be either 35 or 28. If it is 23 one month from now, then the following month the price will be either 18 or 28. The risk-free rate of interest is 1% per month. How much should one be willing to pay today for a call option on the stock with K = 30 and T = 2 months? Construct the binomial tree for a European call option. At each node, provide the call premium (i.e., value) as well as and B.