Valuation of a European Call Option Using Binomial Model

Consider a European call option on a stock currently priced at $50. The stock can either rise to $60 or fall to $40 in one year. The risk-free interest rate is 5%. Using a one-period binomial model, what is the value of the option if we assume that the probability of an upward movement is 0.5?

In this scenario, the call option will only pay off if the stock price increases. Calculate the payoff in each scenario and then apply the risk-neutral pricing approach to determine the option's value.