Consider a European call option on a non-dividend-paying stock with a strike price of $145 and expiration in 6 months. T

[answerhappygod]

Consider a European call option on a non-dividend-paying stock
with a strike price of $145 and expiration in 6 months. The current
stock price is $140. The stock's volatility is 10%. Over each of
the next two three-month periods, the stock price is expected to go
up by 5% or down by 5%. The risk-free interest rate is 5% per annum
with continuous compounding for all maturities.
(a) Use a two-step binomial tree to calculate the value of this
European call option. Show your step-by-step workings.
Note: No need to draw a binomial tree in the answer
field. Just show your calculations.
(b) Use the Black-Scholes-Merton model to calculate the value of
this European call option. Show your step-by-step workings.