A three-month American call option on a stock has a strike price of $20. The stock price

Question:

A three-month American call option on a stock has a of $20. The stock price is $20, the risk-free rate is 3% per annum, and the volatility is 25% per annum. A of $2 is expected in 1.5 months. Use a three-step binomial tree to calculate the option price. Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...