Madeline manufacturing Inc. current stock price is $35 per share. Call options for the stock exist that permit the holder to purchase one share at an exercise price of $30. These options will expire at the end of one year at which time Madeline's stock will be selling at one of two prices $20 or $45. The ricks free rate is 5.5%. Using the binomial option pricing model, create a risk list, hedge investment, and answer the following questions;

what is the current value of the firms call option? Do not round intermediate calculations. Round your answers to the nearest cent.