Question: Consider a two period Binomial Model. If the current stock price of $100 and the risk free rate is 4%. For each period the stock

Consider a two period Binomial Model. If the current stock price of $100 and the risk free rate is 4%. For each period the stock can go up by 15% and down by 15%. The exercise price of this call option is $98.

Find the Value of Call at time period 0 or today using two period binomial model?

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