Question: Any help would be appreciated. Not sure about the formulas for the binomial model. A stock price is currently $40. It is known that at

Any help would be appreciated. Not sure about the formulas for the binomial model.

A stock price is currently $40. It is known that at the end of 1 year it will be either $42 or $38. The risk-free interest rate is 8% per year. What is the value of a 1-year European call option with a strike price of $39? Carefully draw the binomial tree for this option, detail the replicating strategy, nd delta, and then compute the call option price

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