Question: Need help with Finance Question, read it carefully and check your answer please. Thank you. One share of Napier Inc. is currently trading at $84

Need help with Finance Question, read it carefully and check your answer please. Thank you.

Need help with Finance Question, read it carefully and check your answer

One share of Napier Inc. is currently trading at $84 per share. In one year, the price is expected either (1) rise to $105 or (2) fall to $60. You are interested in purchasing a call option on Napier, Inc. The option has a strike price of $92 and expires in 1 year. The current risk-free rate for the year is 2%. Based on binomial options pricing (as shown in class), what is a fair putice for this option? Answer to the nearest cent, with no punctuation. That is, $5.289 should be entered as "5.29

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