The following information is provided in the context of a two period (two six month periods) binomial option pricing model. A stock currently trades at $40 per share, and a call option on the stock has an exercise price of $38. The stock is equally likely to rise by 10% or fall by 10% during each six month period. The one-year risk free rate is 5%.

Find the present value of a European call. Round intermediate steps to four decimals and your final answer to two decimals. Do not use the dollar sign when entering your answer.