The current price of Natasha Corporation stock is

$6.19.

In each of the next two years, this stock price can either go up by

$2.50

or go down by

$2.00.

The stock pays no dividends. The one-year risk-free interest rate is

3.7%

and will remain constant. Using the Binomial Model, calculate the price of a two-year call option on Natasha stock with a strike price of

$7.00.