TABLE 12.1 Binomial option prices for different numbers of binomial steps. As in Figure 10.2, all calculations assume that the stock price S = $41, the strike price K= $40, volatility o=0.30, risk-free rate r = 0.08, time to expiration T=1, " Verity n=4 ne Number of Steps (n) Binomial Call Price ($) 7.839 4 (7.160 Number of Seps (w Bloomini cau Price (9