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CJs stock is currently trading at $18 a share. CJs stock can either increase by a factor of 1.16532 (u=1.16532) or decrease by a factor

CJs stock is currently trading at $18 a share. CJs stock can either increase by a factor of 1.16532 (u=1.16532) or decrease by a factor of 1/u (d=0.85813) over a period of 12 months. There is a 12 month call option on CJ's stock with a strike price of $20.8. The 12 month risk free rate is 4.25%. Fill in the tree below to find the price of the call option today.

- f is the call price at each point on the tree.

- S is the stock price

- u and d stand for up and down respectively

- Do not use continuous compounding

- Do not round intermediate calculations

what are the risk-neutral probabilities?

p = 60.02%

1-p= 39.98%

f is the call price at each point on the tree.

S is the stock price

S0 = 18

f0 = ____?

Sd = 15.45

Su = 20.98

fd = 0

fu = ____?

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