Problem:
Suppose the price of a stock at expiration will be either $10 or $5, and that the current price of a call option with a strike price of $9 is $0.50.
Required:
Question: If the price of a discount bond maturing at expiration is $0.95 (per $1 par), what is the price of the stock?
Note: Please explain comprehensively and give step by step solution.