You are speculating on live hog futures. Interest rates are 2% (continuously com- pounded). Live hogs have a convenience yield of 1%, and a storage cost of 2%. Price a 6 month American call option written on a 2 year live hog futures con- tract, with strike price $675. The current 2 year live hog futures price is $650, with volatility 8%. Value the option using a two step binomial tree.