Question: Consider a two-period binomial model with u=1.2 and d=0.85. What is the current equilibrium price of a call with a strike price of $20.00, if

Consider a two-period binomial model with u=1.2 and d=0.85. What is the current equilibrium price of a call with a strike price of $20.00, if shares of stock are currently trading at $20, and the one-period risk free rate is 4%?

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