The current price of a continuous-dividend-paying stock is $65 per share. Its dividend yield

is 0.02. We model the stock price at the end of two years using a binomial tree. It is assumed that the stock price can either go up, or go down by 30%. The continuously compounded, risk-free interest rate equals 0.05. Consider a two-year, $70-strike European call option on the above stock. What is the risk-free component of the replicating portfolio for this option?