Problem 4. Let h=T/N be the length of one time-step in the binomial tree model. Set u=exp(h)andd=exp(h). Fix T=1,=0.2,S(0)=K=50 and interest rate of r=5% yearly, compounded continuously. There are no dividends. (1) Compute the price C(0,S0) of a European Call with the above parameters using N= 4,8,15,30,60,100,150 (i.e. varying the number of steps, while keeping the maturity fixed and using the particular scaling of u and d above. Note that as N grows, h shrinks.) (2) Also compute the Black-Scholes price of this Call CBS(0,S0). Comment on the answer in relation to what you obtained in