Question: Consider a 2 x 0.24-year call option with a strike price of $114 on a non-dividend-paying stock when the spot price is $114 and the

Consider a 2 x 0.24-year call option with a strike price of $114 on a non-dividend-paying stock when the spot price is $114 and the risk free rate of interest is 19%. Over each of the next two 0.24-year periods, the spot price of the asset is expected to go up by 10% or down by 10%. a) Calculate the price of the call if it is a European option. b) Calculate the price of the call if it is an American option.

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