Consider the binomial option pricing model for an American call option. This call has two periods in a year before expiration. Each binomial has the…

Consider the binomial option pricing model for an American call option. This call has two periods in a year before expiration. Each binomial has the period of six months. Current stock price is Rs 400 per share and exercise price is Rs 350. The risk-free rate is 10 percent (5 percent per period). At the end of each binomial period, the stock price either increases or decreases by 20 percent per period. What is the maximum price you should be willing to pay for this American call option? What would be your investment strategy if the market price of this call is Rs 30?