Question: thumbs up if correct A partial two-stage binomial tree is shown below for an American call option with a strike price of $155, spot price

thumbs up if correct thumbs up if correct A partial two-stage binomial tree is shown below

A partial two-stage binomial tree is shown below for an American call option with a strike price of $155, spot price of $154, and volatility (o) of 20%. The risk-free rate is 1% per annum compounded continuously. TED T: 3mo Tome S188.10 5-170.20 1- 0.4439 S 154 1 5.154.00 20 . 11-05563 S-139.34 0 Sw 126.08 If the value of f, in the tree above turns out to be 10. what would be the value (f) of this option today? Ofs5 5 45

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