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. 1) Using the binomial pricing model, calculate the price of a two-year call option on Kinston stock with a strike price of $9. A) $2.00 B) $2.54 C) $2.40 D) $2.15 2) Using the binomial pricing model, calculate the price of a two-year put option on Kinston stock with a strike price of $9. A) $0.89 B) $0.67 $1.20 D) $0.98