The price of a non dividend pay stock is 60$. Use a two step tree to value a European call option on the stock with a strike price of 60$ that expires in 6 months. The risk free rate is 5% with continuous compounding. Assume that the option is written on 100 shares of stock, and that u=1.15 and d=0.85.

What is the option price today?

How would you hedge a postiion wheere you buy the call option today?