Question: Use the binomial option pricing model to price a call option with an exercise price of $1.33/. There is one period remaining until expiration of

 Use the binomial option pricing model to price a call option

Use the binomial option pricing model to price a call option with an exercise price of $1.33/. There is one period remaining until expiration of the option. Interest rates are 6% in the US and 8% in the UK. The current spot exchange rate is $1.35/ and it could either go up to $1.44/ or down to $1.17/ at expiration. (12 points)

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