QUESTION $19$

You are thinking about investing in a $1-$year call option on GE stock with an exercise price of $$23\mathrm{.}5.$ The current price of a stock is $$20,$ and at the end of one year its price will be either $$26$ or $$16.$ Based on the binomial model, what is the option's value if the annual risk$-$free rate is $6\%?$