You are attempting to value a call option with an exercise price of $$108$ and one year to expiration. The underlying stock pays no dividends, its current price is $$108,$ and you believe it has a $50\%$ chance of increasing to $$136$ and a $50\%$ chance of decreasing to $$80.$ The risk$-$free rate of interest is $10\%.$ Calculate the call option's value using the two$-$state stock price model.

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.You are attempting to value a call option with an exercise price of $$108$

and one year to expiration. The underlying stock pays no dividends, its

current price is $$108,$ and you believe it has a $50\%$ chance of increasing

to $$136$ and a $50\%$ chance of decreasing to $$80.$ The risk$-$free rate of

interest is $10\%.$ Calculate the call option's value using the two$-$state

stock price model.

Note: Do not round intermediate calculations. Round your final

answer to $2$ decimal places.

Answer is complete but not entirely correct.

Value of the call option

$$,12\mathrm{.}70$