It is the beginning of trade on June 6th,2023, and you observe the following list of options written on the Alphabet Inc. stock, all of which are due to expire in approximately two months. The spot price of Alphabet stock was recorded as $125 at the end of the previous trading day. Answer questions 1 and 2 using this data. 3. The price of a stock trading on the NYSE is currently $80 and you project that this price is equally likely to go up or down by $5 per quarter over the next six months. The continuously compounded annual riskfree rate is 5% per year across all maturities. Use a two-step binomial tree with quarterly steps to compute the theoretical price of a European call option with a strike price of $85 and six months left to expiration