What is the current price of a european call option with


Suppose today's stock price of McDonald’s is $150. With probability, 60% the price will rise to $175 in one year and with probability, 40% it will fall to $140 in one year. What is the current price of a European call option with one year until maturity with a strike price of $160 if the risk-free rate of interest is 4%? Use a binomial tree.

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Financial Management: What is the current price of a european call option with
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