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The current price of Kinston Corporation stock is $ 1 0 . In each of the next two years, this stock price can either go

The current price of Kinston Corporation stock is $10. In each of the next two years, this stock price can either go up by $3.00 or go down by $2.00. Kinston stock pays no dividends. The one year risk-free interest rate is 5% and will remain constant. Usung the binomial pricing model, calculste the value of a two year at the money call option on kinston stock
a)
What is the value of call option at year 1 if the stock price goes up
b)
what is the value of call option at year 1 if the stock prixe goes down
c)
What is the value of call optiob at year 0

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