Madeline Manufacturing Inc.s current stock price is $40 per share. Call options for this stock exist that permit the holder to purchase one share at an exercise price of $35. These options will expire at the end of 1 year, at which time Madelines stock will be selling at one of two prices $20 or $45. The risk-free rate is 4.5%. Using the binomial option pricing model, create a riskless hedged investment and answer the following questions:

What is the present value of the riskless portfolio? Do not round intermediate calculations. Round your answer to the nearest cent.