Question: Let S = $65, K = $55, r = 6% (continuously compounded), T = 0.75, and d = 0. Let u = 1.25, d =

Let S = $65, K = $55, r = 6% (continuously compounded), T = 0.75, and d = 0. Let u = 1.25, d = 0.7, and n = 1. Calculate the value of a European call if D = 0.734266 and B = 31.9390.

	a.	$15.788
	b.	$20.209
	c.	$13.894
	d.	$19.577
	e.	$13.262

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