Question: Utilizing a two-period binomial model, for each period (assume 1 year) the stock either goes up by u = 1.45 or the stock goes down

Utilizing a two-period binomial model, for each period (assume 1 year) the stock either goes up by u = 1.45 or the stock goes down by d = .625. Assume the risk free rate is 5% per annum. Assume the current stock price is $10.

What is the price of the call option with a strike of $8? Assume European call option

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