Question: Use the binomial pricing model to find the implied option premium of a call option on Target. Use the following information: stock price = $166.85

 Use the binomial pricing model to find the implied option premium

Use the binomial pricing model to find the implied option premium of a call option on Target. Use the following information: stock price = $166.85 strike price = $170 time steps of 10 days make 3 time steps, 10 days out, 20 days out and 30 days out risk free rate = .5% volatility = 25 What is the premium today? OA. $2.71 B. $6.51 C. $3.68 D.$1.78

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