The current price of a non-dividend-paying stock is $59.64 and you expect the stock price to either go up by a factor of 1.397 or down by a factor of 0.716 over the next 0.7 years.

A European call option on the stock has a strike price of $60 and expires in 0.7 years. The risk-free rate is 8% (annual, continuously compounded).

What is the option payoff if the stock price goes up?

What is the risk-neutral probability of an up movement?

What is the value of the option?