You are attempting to value a call option with an exercise price of $105 and one year to expiration. The underlying stock pays no dividends, its current price is $105, and you believe it has a 50% chance of increasing to $122 and a 50% chance of decreasing to $88 The risk-free rate of interest is 10% Calculate the call option's value using the two-state stock price model (Do not round intermediate calculations. Round your final answer to 2 decimal places.) $ 2.95 Call option's value