European call option on non dividend-paying stock

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Use a two-period binomial tree to find the value of an 8-month 85-strike European call option on a nondividend-paying stock that currently costs $86. Assume that R = 1%, U= 8%, and D = −6%. (Note: the answer is $4.883, but I can not figure out how to get it)

Reference no: EM131897528

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