The current price of a stock is $19. In 1 year, the price will be either $28 or $14. The annual risk-free rate is 7%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.

Find the price of a call option on the stock that has a strike price is of $23 and that expires in 1 year?

(Hint: Use daily compounding.) Assume 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.

Binomial Model Current price High price, Year 1 Low price, Year 1 Risk-free rate, PRE Strike price Time until expiration (in years) Number of days per year $19.00 $28.00 $14.00 7.00% $23.00 1.00 365 Outcome Price up Stock Price $28.00 Strike Price $23.00 Option Payoff $5.00 $23.00 Price down Range $14.00 $14.00 $0.00 $5.00 Binomial Model Current price High price, Year 1 Low price, Year 1 Risk-free rate, PRE Strike price Time until expiration (in years) Number of days per year $19.00 $28.00 $14.00 7.00% $23.00 1.00 365 Outcome Price up Stock Price $28.00 Strike Price $23.00 Option Payoff $5.00 $23.00 Price down Range $14.00 $14.00 $0.00 $5.00