Question $6$

$7\mathrm{.}2pts$

A stock is currently priced at $$110.$ Next year, the stock's price will be either $$165$ or $$65.$ The risk free rate is $4\mathrm{.}50$ percent. Using the binomial option pricing model, determine the price of a call optign on this stock with an exercise price of $$110$ and expiring one year from today.

$$17$

$$26$

$$23$

$$20$

$$14$