Suppose VS's stock price is currently $20.In the next six months it will either fall by 50% or rise by 50%.What is the current value of a call option with an exercise price of $15 and expiration of one year? The six-month risk-free interest rate is 5% (periodic rate).Use the two stage binomial method.
A)$5.00
B)$2.14
C)$7.86
D)$8.23

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The Answer of Suppose VS's stock price is currently $20.In the next six months it will either fall by 50% or rise by 50%.What is the current value of a call option with an exercise price of $15 and expiration of one year? The six-month risk-free interest rate is 5% (periodic rate).Use the two stage binomial method.
A)$5.00
B)$2.14
C)$7.86
D)$8.23

Suppose VS's Stock Price Is Currently $20