The current price of a non-dividend paying stock is 30 use, Financial Management

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The current price of a non-dividend paying stock is 30 use

The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European call option on the stock with a strike price of $30 that expires in 6 months. Each step is 3 months, the risk free rate is 5% per annum with continuous compounding. What is the option price when u = 1.15 and d = 0.85? Assume that the option is written on 100 shares of stock.

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Financial Management: The current price of a non-dividend paying stock is 30 use

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Financial Management: The current price of a non-dividend paying stock is 30 use

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