Problem 3 For a two-period binomial model, you are given: - Each period is one year. - The current price for a non-dividend paying stock is $20. - u=1.2840, where u is one plus the rate of capital gain on the stock per period if the stock price goes up. - d=0.8607, where d is one plus the rate of capital loss on the stock per period if the stock price goes down. - The risk-free interest rate is 5%. Calculate the price of an American call option on the stock with a strike price of $22