Question: Consider the following binomial option pricing problem involving a call. This call has two periods to go before expiring. Its stock price is $65, and

Consider the following binomial option pricing problem involving a call. This

Consider the following binomial option pricing problem involving a call. This call has two periods to go before expiring. Its stock price is $65, and its exercise price is $60. The risk-free rate is 0.05%, the value of u is 1.20, and the value of the d is 95. Construct the 2-period binomial tree model and find the value of the European call premium

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