Use a three-period binomial model for this question.A stock has a current price of $75 and has volatility of 20% per period.The risk-free rate is 8% per period.

Calculate the current value of an American Call option that has a strike price of $70.The option has a clause in the contract which states that if the price of the stock ever reaches $100 or higher, the strike price will be changed to $100 (this change happens as soon as a price of $100 or higher is reported, and cannot be changed back once it occurs.)Show all workings clearly!