Question: Given the following information in a two-period Binomial model: r- 5%, 5-$20, S, - $25. S-$16, Suu- $31.25, Sud-$20-Sdu Sad $12.80 and strike price X

Given the following information in a two-period Binomial model: r- 5%, 5-$20, S, - $25. S-$16, Suu- $31.25, Sud-$20-Sdu Sad $12.80 and strike price X - 18. The call premium is A) $4.5820 B) $3.2560 C) $4.6051 D) $2.3560

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