Question: Check My Work 5-2: The Single-Period Binomial Option Pricing Approach Problem 5-7 Binomial Model The current price of a stock is $16. In 6 months,

Check My Work 5-2: The Single-Period Binomial Option Pricing Approach Problem

Check My Work 5-2: The Single-Period Binomial Option Pricing Approach Problem 5-7 Binomial Model The current price of a stock is $16. In 6 months, the price will be either $19 or $12. The annual risk-free rate is 4%. Find the price of a call option on the stock that has a strike price of $15 and that expires in 6 months. (Hint: Use daily compounding.) Round your answer to the nearest cent. Assume a 365-day year. Do not round your intermediate calculations. $ Check My Work O 3 10:52 PM 9/29/2020 hp to insert prt sc. fa is * & % backspace

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