You are considering selling a call option on a non-dividend stock that has a current price of $100 per share. The option will have an expiration date of 1 year and a strike price of $110. You have determined that the stock will either be worth $125 or $80 one-year from today and the risk-free rate is 10%. Using a 1-step binomial option pricing model, determine the price for the call option.
Group of answer choices
$6.67
$9.20
$15.00
$26.67
