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The current price of Kinston Corporation stock is $ 1 0 . In each of the next two years, this stock price can either go
The current price of Kinston Corporation stock is $ In each of the next two years, this stock price can either go up by $ or go down by $ Kinston stock pays no dividends. The one year riskfree interest rate is and will remain constant. Usung the binomial pricing model, calculste the value of a two year at the money call option on kinston stock
a
What is the value of call option at year if the stock price goes up
b
what is the value of call option at year if the stock prixe goes down
c
What is the value of call optiob at year
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