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The stock price of Apax Inc. is currently $105. The stock price a year from now will be either $125 or $90 with equal probabilities.

The stock price of Apax Inc. is currently $105. The stock price a year from now will be either $125 or $90 with equal probabilities. The interest rate at which investors can borrow is 10%. Using the binomial option pricing model, the value of a call option with an exercise price of $110 and an expiration date 1 year from now should be worth today. O A. $9.9 B. $20 $10.5 D. $15

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