Please provide a detailed solution to all parts of the problem

46) Based on past market data, a risky asset having today's value S(t=0)=$65 has drift and volatility equal to =0.03/ month and =0.08/(month)1/2, respectively. Assume that the continuously compounded interest rate on bonds is r=0.01/ month. (a) Find the premium of a European call option with strike price X=$80 and exercise time in 4 months using a 2-step binomial model. (b) Find the premium of the same European call option as in (a) using a 4-step binomial model. 46) Based on past market data, a risky asset having today's value S(t=0)=$65 has drift and volatility equal to =0.03/ month and =0.08/(month)1/2, respectively. Assume that the continuously compounded interest rate on bonds is r=0.01/ month. (a) Find the premium of a European call option with strike price X=$80 and exercise time in 4 months using a 2-step binomial model. (b) Find the premium of the same European call option as in (a) using a 4-step binomial model