Suppose that S$0=$ $$50,$ d $=0\mathrm{.}8,$ u $=1\mathrm{.}25,$ X $=$ $$50,$ T $=0\mathrm{.}25,$ and the effective

annual risk$$free rate is rf $=5\%.$ Find the price of the call option and the delta

of the option

Question: Assume that the probability for the stock to go up is $60\%.$ What are

expected returns of the stock and the call option?