You are given the following information:

S0 = $ 35.0 X = $ 32.0

U = 1.1 per period D = 0.85 per period

T = 0.5 R = 5.0%

standard deviation sigma = 0.25 and dividend yield q = 0.

Use a two-period Binomial Model to compute the Price of a European Call Option based on the above information and

find the Probability that the Option will be Exercised.