Calculate the price of a 12-month long call option

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Using the following information, calculate the price of a 12-month long call option using a two-step binomial tree procedure. S0 = £15, K = £14, r = 5% (annual), σ = 20% (annual).

Reference no: EM132515944

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Calculate the price of a 12-month long call option : Using the following information, calculate the price of a 12-month long call option using a two-step binomial tree procedure. S0 = £15, K = £14, r = 5%
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