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e https://www.youtube.com/watch? v=JeY4Bq1F-8Q 4.3 Test your Knowledge (Question): Q. Consider a stock currently (Sg) priced at SAR 80. One period later it can go up(u) 

e https://www.youtube.com/watch? v=JeY4Bq1F-8Q 4.3 Test your Knowledge (Question): Q. Consider a stock currently (Sg) priced at SAR 80. One period later it can go up(u) by 25% or go down(d) by 20%. The risk-free rate is 7 percent. Calculate the current/theoretical value of the European call option if the exercise/strike price is SAR 80?

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