Answer questions #18 - #21 based on the foll We are using a two-state, two American call option. The curren price is $25. The risk-free rate each perio price can either go up by 15% and it is paid out at the end of period 1 and based on the following information. two-state, two-period binomial process to estimate an tion. The current stock price is $30 and the exercise isk-free rate each period is 5%. Each period the stock er go up by 15% or down by 10%. The dividend yield is 6% ssible values for the stock at the final nodes are a. $24.30, b. $11.45, c. $22.84. d. $21.47. e. $23.56, $31.05 and $39.67 $11.86 and $12.38 $27.92 and $33.29 $27.44 and $35.06 $28.33 and $36.14 19. The current fair market price of the call is a. $4.50 b. $5.00 c. $5.50 d. $6.00 e. $6.50 20. It would pay to exercise this call early a. Never b. Only at period 1 if the stock is in the up state c. Only at period l if the stock is in the down state d. At period I if the stock is in either the up state or the down state and also at period 0 e. At period I only if the stock is in the up state and also at period 0 21. The value added because this call is American as opposed to being European is about a. $0 b. $0.05 c. $0.25 d. $0.65 e. $0.95