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The current price of Estelle Corporation stock is $35. Its stock price will either go up by 20% or go down by 20% in one

The current price of Estelle Corporation stock is $35. Its stock price will either go up by 20% or go down by 20% in one year. The stock pays no dividends. The one-year risk-free interest rate is 5%. Using the binomial model, calculate the price of a one-year put option on Estelle stock with a strike price of $35.

The price of a one-year put option on Estelle stock with a strike price of $35 is ....... $enter your response here.

(Round to the nearest cent.)

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