Use the Information for the Question(s)below

question 25

Essay

Use the information for the question(s)below.
The current price of Kinston Corporation stock is $10.In each of the next two years,this stock price can either go up by $3.00 or go down by $2.00.Kinston stock pays no dividends.The one-year risk-free interest rate is 5% and will remain constant.
-Using the binomial pricing model,calculate the price of a two-year call option on Kinston stock with a strike price of $9.

---

Definitions:

Glycogen

A form of glucose storage in the body, primarily found in the liver and muscles.

Glucose

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.

Fuel

A substance used to produce energy through chemical or nuclear reactions, especially for powering engines or generating electricity.

Macronutrient

A type of nutrient required in large amounts in the diet, which includes proteins, fats, and carbohydrates.