Francis has a long position on the underlying asset and has sold a number of call options with the following binomial tree:

Given the current asset price is $20 and r is 5%, what is the price of the this call option?
A)$2.86
B)$0.60
C)$21.43
D)−$21.43

Question

Francis has a long position on the underlying asset and has sold a number of call options with the following binomial tree:

Given the current asset price is $20 and r is 5%, what is the price of the this call option?
A)$2.86 
B)$0.60 
C)$21.43 
D)−$21.43

Quizplus · Accepted Answer

The Answer of Francis has a long position on the underlying asset and has sold a number of call options with the following binomial tree:

Given the current asset price is $20 and r is 5%, what is the price of the this call option?
A)$2.86 
B)$0.60 
C)$21.43 
D)−$21.43

Francis Has a Long Position on the Underlying Asset and Has