Question: 0 / 10 pts Incorrect Question 8 The current price of Montana Railroad stock is $10. In each of the next two years, this stock

0 / 10 pts Incorrect Question 8 The current price of

0 / 10 pts Incorrect Question 8 The current price of Montana Railroad stock is $10. In each of the next two years, this stock price can either go up by 25% or go down by 20%. The stock pays no dividends. The one-year risk-free interest rate is 4.3% and will remain constant. Using the Binomial Model (risk-neutral probabilities), find the price of the two-year American call option with a strike price of $10.50. $5.27 $4.19 51.38 $3.89

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