Answer questions #18 - #21 based on the following information. We are using a two-state, two-period binomial process to estimate an American call option. The current stock price is $30 and the exercise price is $25. The risk-free rate each period is 5%. Each period the stock price can either go up by 15% or down by 10%. The dividend yield is 6% and it is paid out at the end of period 1 and 2. 18. The possible values for the stock at the final nodes are a. $24.30, $31.05 and $39.67 b. $11.45, $11.86 and $12.38 c. $22.84, $27.92 and $33.29 d. $21.47, $27.44 and $35.06 e. $23.56, $28.33 and $36.14 9. The current fair market price of the call is a. $4.50 b. $5.00 c. $5.50 d. $6.00 e. $6.50 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 1 if the stock is in the down state d. At period 1 if the stock is in either the up state or the down state an also at period 0 e. At period 1 only if the stock is in the up state and also at periodo The value added because this call is American as opposed to be uropean is about 21