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QUESTION 2 The current stock price of Chocho Inc. is $120. You expect the stock price a year from now to be either 5137 or

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QUESTION 2 The current stock price of Chocho Inc. is $120. You expect the stock price a year from now to be either 5137 or $83 with equal probabilities. The interest rate at which investors can borrow is 12%. Using the binomial OPM, what should be the price (premium) of a CALL option with an exercise price of $120 and an expiration date 1 year from now? a$18.12 b. $16.61 $14.45 O d. 514.45

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