We used the template below in class to value a call option with a strike of $$53,S=$$$50,u=2,$

$d=\frac{1}{2},r=6\%.$

One period binomial tree summary

Repeat the analysis to determine the premium for a call with a strike of $$50($at the money$),$ with

higher volatility $(u=4$ and $d=\frac{1}{4})$ and a higher interest rate $(r=12\%).$

A$.$ What is the expected value of the underlier price?

B$.$ How likely is the option to be exercised?