Question: Problem 5-7 Binomial Model The current price of a stock is $16. In 6 months, the price will be either $19 or $11. The annual

Problem 5-7 Binomial Model The current price of a stock is $16. In 6 months, the price will be either $19 or $11. The annual risk-free rate is 3%. Find the price of a call option on the stock that has a strike price of $15 and that expires in 6 months. (Hint: Use daily compounding) Round your answer to the nearest cent. Assume a 365-day year. Do not round your intermediate calculations

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