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The price of Ervin Corp. stock will either be $68 or $82 at the end of the year. Call options are available with one year

The price of Ervin Corp. stock will either be $68 or $82 at the end of the year. Call options are available with one year until expiration.Continuously compoundedT-bills currently yield 4.86 %. Suppose the current price of Ervin stock is $73.

What is the value ofthe call option, using therisk-free approach, if the strike price is $55 per share? (Round answer to 2 decimal places. Do not round intermediate calculations).

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