Please answer. Will rate.

You are given the following information regarding stock of the Amazing Gadget Corporation (AGC). (1) The stock is currently selling for $50. (2) One year from now the stock will sell for either $40 or $55. (3) The stock pays dividends continuously at a rate proportional to its price. The dividend yield is 10%. The continuously compounded risk-free interest rate is 5%. Bob's brokerage account manager says that a one-year at-the-money European call written on stock AGC is currently selling for $1.90. Bob wonders whether this call is fairly priced. He uses the binomial option pricing model to determine if an arbitrage opportunity exists. (1) Is there an arbitrage opportunity? (2) What transactions should Bob enter into to exploit the arbitrage opportunity (if one exists)