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3M Company is currently trading at $182. X=180, expires in 2 periods. Given that u=1.05; d=0.97; r=1.04 a)What is the stock price in up and

  1. 3M Company is currently trading at $182. X=180, expires in 2 periods. Given that u=1.05; d=0.97; r=1.04
  2. a)What is the stock price in up and up state in Period 2 (C2uu)?
  3. b)What is the option price in down state in Period 1 (C1d)?
  4. c)What is the call option price today (C0)?

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