Question: Q8: Use a two period binomial tree to price a 8 month American style call option on TFS struck at $8. The spot price of

Q8: Use a two period binomial tree to price a 8 month American style call option on TFS struck at $8. The spot

Q8: Use a two period binomial tree to price a 8 month American style call option on TFS struck at $8. The spot price of TFS is $8.00 and it pays no dividends. Assume u = 1.05134, d = 0.92810, and r = 9.00%. = A) $0.74 B) $0.66 C) $0.49 D) $0.71 E) $0.55

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