7. A binomial tree is used to value a European call option. The strike price is $90 and the option expires 6 months from now. The underlying stock price is modeled by a binomial tree with volatility 0.2, time step 6t 0.25, and number of time steps n 2. The risk-free interest rate is r = 0.04. (a) Find p, q, u and v. (b) If the current stock price is $100, find the current value of the option. 7. A binomial tree is used to value a European call option. The strike price is $90 and the option expires 6 months from now. The underlying stock price is modeled by a binomial tree with volatility 0.2, time step 6t 0.25, and number of time steps n 2. The risk-free interest rate is r = 0.04. (a) Find p, q, u and v. (b) If the current stock price is $100, find the current value of the option