15. The current price of Estelle Corporation stock is $28.00. In each of the next two years, this stock price will either go up by 19% or go down by 19%. The stock pays no dividends. The one-year riskfree interest rate is 6.3% and will remain constant. Using the Binomial Model, calculate the price of a one-year put option on Estelle stock with a strike price of $28.00. Solution: Put Option = 1.67 [follow the same steps used in class with the following binomial tree] 15. The current price of Estelle Corporation stock is $28.00. In each of the next two years, this stock price will either go up by 19% or go down by 19%. The stock pays no dividends. The one-year riskfree interest rate is 6.3% and will remain constant. Using the Binomial Model, calculate the price of a one-year put option on Estelle stock with a strike price of $28.00. Solution: Put Option = 1.67 [follow the same steps used in class with the following binomial tree]