Question: Consider a binomial world in which the current stock price of 60 can either go up by 11 percent or down by 9 percent. The

Consider a binomial world in which the current stock price of 60 can either go up by 11 percent or down by 9 percent. The risk-free rate is 2.5 percent. Assume a one-period world. Assume a call with an exercise price of 65, what would be the call's price if the stock goes down? O 5.40 0 7.2 5.85 O 6.40 O none of the given choices

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