The current price of Montana Railroad stock is $10. In each of the next two years, this stock price can either go up by 25% or go down by 20%. The stock pays no dividends. The one-year risk-free interest rate is 4.3% and will remain constant. Using the Binomial Model (risk-neutral probabilities), find the price of the two-year American call option with a strike price of $10.50. $4.19 $3.89 $1.38 $5.27