A stock price is currently $20. It is known that at the end of one month that the stock price will either increase to 22 or decrease to 16. The risk-free interest rate is 12% per annum with continuous compounding. The hedge portfolio is a long position inshares of stock plus one short Europeancalloption with strike price of $20 and expiration in 1 month. Using the no-arbitrage method, what is the present value of this hedge portfolioat time 0?