Explain how the Black-Scholes option pricing model builds on the binomial model. Where does it make extensions? Where is it similar? Use the Black-Scholes formula to calculate the price of a call option given the following information: S = $1.50/, X = $1.55/, r=1%, r* = 2%, T =1, ) = 20%. 0 Explain how the Black-Scholes option pricing model builds on the binomial model. Where does it make extensions? Where is it similar? Use the Black-Scholes formula to calculate the price of a call option given the following information: S = $1.50/, X = $1.55/, r=1%, r* = 2%, T =1, ) = 20%. 0