Binomial Option Pricing. Strudler Real Estate, Inc., a construction firm financed by both debt and equity, is undertaking a new project. If the project is successful, the value of the firm in one year will be $198 million, but if the project is a failure, the firm will be worth only $120 million. The current value of the company is $163 million, a figure that includes the prospects for the new project. The company has zero-coupon debt outstanding with a face value of $150 million. Treasury bills that mature in one year have an EAR of 7 percent. The company pays no dividends. Use the binomial option pricing model to find the current value of the companys debt and equity.