Question: 6.In the binomial model, the risk-free interest rate discounted expected payoff of a call option using actual probabilities is $3.296, the market price of risk

6.In the binomial model, the risk-free interest rate discounted expected payoff of a call option using actual probabilities is $3.296, the market price of risk 0.0427, and the risk of the call option is $5. Then, the price of the call option is:

a.

$3.14

b.

$3.30

c.

$3.22

d.

$3.02

e.

$3.08

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