Question: Consider an one period model with three states and two assets, a risk-free bond B and a stock. Suppose that B 0 = 100, B

Consider an one period model with three states and two assets, a risk-free bond B and a stock. Suppose that B₀ = 100, B_T = 105, S₀ = 10 and S_T = (8, 9, 12). Consider a call-option on the stock with exercise price K = 10. Find all the possible arbitrage-free prices for the call option.

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