Please solve and show your work for A and B.

Please include formula and how you got to the answer.

Please include reasoning.

The stock price of XYZ, Inc. will either rise by 35% or fall by 15% over the next three months. The current price of XYZ is $100 a share. The three-month risk-free interest rate is 2%. Note that there is only one change" in the stock price over the next three months. a) Calculate the value of a three-month call option using the replicating portfolio method. The exercise price is $100. b) Calculate the value of the call option (from part a) using the risk-neutral method