A Stock with a Current Price of $28 Will Either

Multiple Choice

A stock with a current price of $28 will either move up by a factor of 1.10 or down by a factor of .90 each period over the next two periods.The risk-free rate of interest is 4 percent.What is the current value of a call option with a strike price of $30?

A) $1.36
B) $1.49
C) $1.71
D) $2.09
E) $2.13