You are given the following information from the WSJ and the Cumulative normal distribution tables. The option matures in 0.5 years and is at the money. The current stock price of the underlying stock is $90.00. Compute the following:

1. Use the stock price and strike price information from above. Assume that the stock price can either go up by 20% or go down by 10% each period. Set up a replicating portfolio of the stock and a risk free bond and use a two-period binomial model. Assume that each period lasts 0.25 years. The risk free rate is 5.0% per year.
2. CLEARLY show the payoff for the Stock, Bond and the Call in both periods.
3. Calculate the Number of Stocks and Bonds in both periods required to replicate the call.
4. Using no Arbitrage, compute the price of the Call option using this replicating portfolio.
5. Compute the probability (implied) that the stock price will go up.
6. Compute the annualized variance of the stock.
7. Compute the Black- Scholes- theoretical option price for a European Call option on the stock using the above.
8. Using Put Call Parity, compute the price of a European Put option on a share of the stock.