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The current price of Estelle Corporation stock is 25. In each of the next two years, this stock price will either go up by 24%

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The current price of Estelle Corporation stock is 25. In each of the next two years, this stock price will either go up by 24% or go down by 24%. The stock pays no dividends. The one-year risk-free interest rate (with continuous compounding) is 8% and will remain constant 1. Price a one-year call option on Estelle stock with a strike price of 25. 2. Price a one-year put option on Estelle with a strike price of 25

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