Determine the price of a European call option on a 6.5% four-year Treasury bond with a strike

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Determine the price of a European call option on a 6.5% four-year Treasury bond with a strike price of 100.25 and two years to expiration assuming: (1) the arbitrage-free binomial interest-rate tree shown in Exhibit 30-10 (based on a 10% volatility assumption),and (2) the price of the Treasury bond two years from now shown at each node. Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.
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