Question: 5. (10 points) Let A(0) = 110, A(T) = 130, S(0) = 120 dollars, and let T S 170, with probability p, 90, with probability

5. (10 points) Let A(0) = 110, A(T) = 130, S(0) = 120 dollars, and let T S 170, with probability p, 90, with probability 1 - p. Price a call option C(0) with strike price X = 150 and compute the risk of the cost of buying one share with the call option if p = 0.45

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