A call option has an exercise price of $30. The stock price at a point on the binomial tree is $36.24. The calculated present value of the option at that same point is $5.86
What figure should be used to calculate option prices at points moving toward the final price?
A)
$5.86
B)
$6.24
C)
$6.62
D)
$7.01
Answer:
B
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