Question: Use the two state call option value in this problem. Data: S0=130 ; X=143 ; 1 + r=1.1. The two possibilities for ST are 160

Use the two state call option value in this problem. Data: S0=130 ; X=143 ; 1 + r=1.1. The two possibilities for ST are 160 and 109. Calculate the value of a call option on the stock with an exercise price of $143.

Answer is $10.3

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