Question: Problem 16-22 Two.Period Binomial Option Pricing (CFA2) A stock with a current price of $73 has a call option available with a strike price of

 Problem 16-22 Two.Period Binomial Option Pricing (CFA2) A stock with a

Problem 16-22 Two.Period Binomial Option Pricing (CFA2) A stock with a current price of $73 has a call option available with a strike price of $75. The stock will move up by a factor or 90 of down by a factor of 75 each period for the next two periods and the risk-free rate is 1.8 percent. What is the price of the call option today? ( Answer is complete but not entirely correct

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