0 / 10 Incorrect Question 3 Currently, Goldstar Inc. is trading at $5.85 per share. You estimate that in the next two years, the stock price of Goldstar can either go up by $2.50 or go down by $2.00. Goldstar Inc. pays no dividends. The one-year risk-free interest rate is 5% and will remain constant. Use the binomial model to calculate the value of a two-year European call option on Goldstar Inc. with strike price of $7.00. 1.20 0.70