Let S $=$ $$100,$ K $=$ $$95,\backslash$sigma $=30\%,$ r $=8\%,$ T $=1,$ and $\backslash$delta $=0.$ For simplicity, let u $=1\mathrm{.}3,$ d $=0\mathrm{.}8$ and n $=2($that is$,2$ periods$).$ Using the Binomial option pricing model, what is the current European call option premium $($call value at the first node or Time $0)?$

Question $13$ options:

$$19\mathrm{.}994$

$$38\mathrm{.}725$

$$4\mathrm{.}165$

$$2\mathrm{.}407$

$$20\mathrm{.}388$