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Please help explain in detail i have tried and can not get the right answer thank you for your help Let S = $45, r

Please help explain in detail i have tried and can not get the right answer thank you for your help

Let S = $45, r = 3% (continuously compounded), d = 5%, s = 30%, T = 1.5. In this situation, the appropriate values of u and d are 1.27738 and 0.75972, respectively. Using a 2-step binomial tree, calculate the value of a $40-strike European call option.

Selected Answer: image text in transcribedb.

$8.305

Answers: a.

$7.037

b.

$8.305

image text in transcribedc.

$7.783

d.

$8.141

e.

$7.960

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