For a binomial option pricing model, you are given the following information:

• The current stock price is $110.

• The strike price is $100.

• The interest rate is 5% (continuously compounded)

• The continuous dividend yield is 3.5%.

• The volatility is 0.30.

• The time to expiration is 1 year.

• The length of period is 4 months.

Compute the risk-neutral probability of an increase in the stock price over one period.

(A) Less than 0.425

(B) At least 0.425, but less than 0.445

(C) At least 0.445, but less than 0.465

(D) At least 0.465, but less than 0.485

(E) At least 0.485