• Use Two-State Binomial Option (European) Pricing Model.
• Suppose you bought a stock today for $20.00.
• The stock price can either go up to $23.00 or down to $18.00 with equal probability in 0.25 years (or 90 days).
• Suppose the annual risk-free rate is 8.00% and the option exercise price is 22.00.

How much should be the Call Option Value that expires in 0.25 years (or 90 days)? Enter your answer in the following format: 0.1234 Hint: The answer is between 0.4111 and 0.5224