Question: Suppose = 4, u = 2, d = 1/2, and r = 1/4. Let N = 2. Consider a European call option with strike price

Suppose Suppose = 4, u = 2, d = 1/2, and r = = 4, u = 2, d = 1/2, and r = 1/4. Let N = 2. Consider a European call option with strike price K = 5. Evaluate

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