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You are about to price a call option that has a strike price of $30 and...

You are about to price a call option that has a strike price of $30 and a maturity of 9 months. You know the current risk-free rate for all periods up to a year is 4.95% with continuous compounding, the current stock price is $28.75, and the stocks volatility is 25%. Use CRR approach for u & d when needed. What is the risk-neutral probability of the stock price moving up in a 30-step tree? a. .4489 b. .4745 c. .5058 d. .5328 e. .9684

the answer is C but how

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