Question: 6. Consider a one period binomial option pricing model where So 2, U= 3, d=.5, r = .2 for a call of price X that

6. Consider a one period binomial option pricing model where So

6. Consider a one period binomial option pricing model where So 2, U= 3, d=.5, r = .2 for a call of price X that is the right to buy one share of stock at 3 at time one. Find the non-arbitrage price of the call option at t = 0. Find also the portion A, of stock to be purchased at t = 0

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