Using the binomial option pricing model, O calculate the value of the call iT'S = $55, X = 40, and the stock

can either be worth $90 or $30 one year from now. Assume that the risk-free rate is 10%. Without having to perform the calculation if the stock prices one year from now were $80 and $35, would the value of the call be greater or less than the previous value? Explain. How is the B/S model and the binomial model related?