Consider a European call option on a non-dividend-paying stock where the stock price is $40, the strike

Question:

Consider a European call option on a non-dividend-paying stock where the stock price is $40, the is $40, the risk-free rate is 4% per annum, the volatility is 30% per annum, and the time to is six months.
a. Calculate u, d, and p for a two step tree
b. Value the option using a two step tree.
c. Verify that DerivaGem gives the same answer
d. Use DerivaGem to value the option with 5, 50, 100, and 500 time steps. Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...