Find the value of option today using binomial option model

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Question 1: If HP shares are currently priced at $ 100. One period later it can go up by an increase of 25 percent or down by 20 percent. A call option with an exercise price of $100. The risk-free rate is 7 percent. Find the value of the option today using Binomial option model.

Reference no: EM132498226

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