The current price of a stock is 15 in 6 months the price, Accounting Basics

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The current price of a stock is 15 in 6 months the price

Question: The current price of a stock is $15. In 6 months, the price will be either $18 or $13. The annual risk-free rate is 6 percent. Find the price of a call option on the stock that has an exercise price of $14 and that expires in 6 months. (Hint: Use daily compounding.)

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Accounting Basics: The current price of a stock is 15 in 6 months the price

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