For a binomial forward tree modeling the price movements of a stock, you are given:

(i) The length of each period is 6 months.

(ii) The current price of a nondividend-paying stock is $9,000.

(iii) The stock’s volatility is 32%.

(iv) The continuously compounded risk-free interest rate is 20%.

Consider the following offer:

By receiving this offer, 6 months from now you are obligated to buy a 6-month $9,000-strike European call option on the stock for $1,500. This call option expires one year from now.

Calculate the current fair price of this offer.