Suppose the current stock price S is 82, stock volatility is 0.3, the annual risk-free rate r is 5%, maturity time T-2 years. 1. Build a two-period Binomial tree. What are the u and d? 2. Calculate the price of the European call option with strike price K-80 using the replicating portfolio. Find the European call price with K-80 using the risk neutral probability If the expected rate of return of the stock is 0.1, calculate the rate of return of the European call option with K-80. 3. 4. u -d