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In a binomial model a call option and a put option are both written on...

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In a binomial model a call option and a put option are both written on the same stock. The exercise price of the call option is $25 and the exercise price of the put option is $20. The call option's payoffs are 3 (up move) and 0 (down move) and the put option's payoffs are 2 (up move) and 5 (down move). The price of the call is $2.90 and the price of the put is $1.75. a) What is the riskless interest rate? Assume that the basic period is one year. b) What is the price of the stock today? In a binomial model a call option and a put option are both written on the same stock. The exercise price of the call option is $25 and the exercise price of the put option is $20. The call option's payoffs are 3 (up move) and 0 (down move) and the put option's payoffs are 2 (up move) and 5 (down move). The price of the call is $2.90 and the price of the put is $1.75. a) What is the riskless interest rate? Assume that the basic period is one year. b) What is the price of the stock today

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