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Homework answers / question archive / Consider an American call option on a share with value S=$5 at t=0, with strike price K=$3

Consider an American call option on a share with value S=$5 at t=0,

with strike price K=$3.5, and a CRR model with N=2 steps, u=1.25, d=0.8, and per-step returns R(0,0) = 1.1, R(1,0) = 1.05 and R(1,1) = 1.2.

What is the premium C(0)?