Q 6. A 6-months European call option on a stock with a strike price of $65 is modelled with a two-step binomial tree. The stock price is currently $60 which is expected to go up by 20% or down by 10% over each of the next two periods. You are also given continuously compounded interest rate 5% per annum. a. Calculate the risk-neutral probability of stock price going up in one period. (Please round your answer to 4th decimal place) b. Compute the price of the above European call option. (Please round your answer to 3rd decimal place) END OF QUESTION 6