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Watch the short video in the following link: https://www.youtube.com/watch?v=JeY4Bq1F-8Q After Watch video solve below question. Question Consider a stock currently (S 0 ) priced at

Watch the short video in the following link:

  • https://www.youtube.com/watch?v=JeY4Bq1F-8Q

After Watch video solve below question. Question Consider a stock currently (S0) priced at SAR 80. One period later it can go up(u) by 25% or go down(d) by 20%. The risk-free rate is 7 percent. Calculate the current/theoretical value of the European call option if the exercise/strike price is SAR 80?

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