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Compute for the following 12-month call option on a non-dividend paying stock.The stock is selling for 20.The strike price is 20.The possible prices of the

Compute for the following 12-month call option on a non-dividend paying stock.The stock is selling for 20.The strike price is 20.The possible prices of the underlying stock at the end of 12 months are 35 and 10.The continuously compounded interest rate is 5%.Using the binomial model, which of the following is closest to ?

a.0

b..20

c..40

d..60

e..80

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