Question: Consider the below information: Two period, two state world. Let the current stock price be 90 The risk-free rate be 8%. Each period the stock

Consider the below information: Two period, two state world. Let the current stock price be 90 The risk-free rate be 8%. Each period the stock price can go either up by 10% or down by 8%. A call option expiring at the end of the second period has an exercise price of 85. Requirements: 1. Find the stock price sequence (S., Sd, s. 2, Sud, Sau, and S. 2) 2. Determine the possible prices of the call at the end of the second period (C., Ca, C."?, Cud. Cau and C.")

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