Assume you have been given the following information on Queller Industries:

What is the option's highest possible payoff at expiration (rounded to nearest dollar)?

$0

$10

$3

$16

$13

Current stock price = $40 Time until expiration of option = 6 months Number of periods until expiration = 2 Option's exercise (strike) price = $43 Factor for an increase in stock price is u = 1.15 Factor for downward movement is d = 0.85