1 of 3 ID: FRM.OP.BOP.01.0020 The diagram below represents the price movement of a certain stock for 9 months. Using the binomial pricing model, calculate the value of a European call option on this stock with a strike price of $32. Assume that the risk free rate is 6% pa continuously compounded, that there are no arbitrage opportunities and that stocks are infinitely divisible. Give your answer in dollars and cents to the nearest cent. Value of the call option $ Stock price = $30 Binomial Step Stock price = $33 Stock price = $27