Question: Please answer these questions with explanations , do not copy from other answers from chegg! 2. Consider an at-the-money European call option with one year

Please answer these questions with explanations , do not copy from other answers from chegg!

2. Consider an at-the-money European call option with one year left to maturity written on a non-dividend paying stock. Let today's stock price be 80 kr and the stock volatility be 28%. Furthermore let the risk free interest rate be 12%. Construct a one-year, two-step Binomial tree for the stock and calculate today's price of the European call

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