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The current price of Estelle Corporation stock is $20.00. In each of the next two years, this stock price will either go up by 18%
The current price of Estelle Corporation stock is $20.00. In each of the next two years, this stock price will either go up by 18% or go down by 18%. The stock pays no dividends. The one-year risk-free interest rate is 8.0% and will remain constant. Using the Binomial Model, calculate the price of a one-year call option on Estelle stock with a strike price of $20.00. The price of the one-year call option is $ (Round to to the nearest cent.)
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