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DPG a non dividend paying stock is currently trading for 150 a

DPG, a non-dividend-paying stock, is currently trading for $150 a share. There is a 30-percent chance that the stock will trade for $125 in one year, and a 70-percent chance that the price will increase to $175. The risk-free rate is 5 percent per year. There is a one-year call with a strike price of $165.

a. What is the price of the call?

b. b. What is the delta of the call? Define and calculate.

a. What is the price of the call?

b. b. What is the delta of the call? Define and calculate.

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