The following information is provided in the context of a two-period (two six-month periods) binomial option pricing model. A stock currently trades at $60 per share, and a call option on the stock has an exercise price of $65. The stock is equally likely to rise by 15 percent or fall by 15 percent during each six-month period. The one-year risk free rate is 3 percent. Refer to Exhibit 16.2. Calculate the possible prices of the stock at the end of one year.

a. $58.65, $43.35, $14.35

b. $51, $79.35, $58.65

c. $72.65, $53.35, $17.25

d. $69, $51, $79.35

e. $79.35, $58.65, $43.35