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You are attempting to value a call option with an exercise price of $100 and...

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You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays no dividends its current price is $100, and you believe it has a 50% chance of increasing to $120 and a 50% chance of decreasing to $80 The risk free rate of interest is 10% a. What will be the payoff to the call, C if the stock goes up? Payoff b. What will be the payoff Gif the stock price foils? Payoll c. Calculate the risk-neutral probability. (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Find the value of the option (Do not round intermediate calculations. Round your answer to 2 decimal places.) Call value

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