Question: Using the single period binomial tree, calculate the value today of a one year call option on a stock that has an exercise and current

Using the single period binomial tree, calculate the value today of a one year call option on a stock that has an exercise and current price of $50. Assume that if the market was to increase, the stock price would increase to $60 and the risk free rate is 5%. a. 6 b. 6.25 c. 6.3 d. 6.50

Using the two period binomial tree, calculate the value today of a two year call option on a stock that has an exercise and current price of $60. Assume that if the market was to increase, the stock price would increase to $75 and the risk free rate is 5%. a. 8.25 b. 9.25 c. 10.25 d. 11.25

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