You are considering investing in a condo in Buckhead. Right now the condo costs $500,000. However, you are uncertain about the future direction of the real estate market. Your best guess is that in one year, the price of the condo could go up to $650,000 or fall down to $400,000. An options broker offers to sell you an option to buy the condo in one years time for $500,000 regardless of what house prices are at that time. Assuming the annual risk-free interest rate is 5%, what is the most you are willing to pay for this option? (Hint: Use a one-step binomial option pricing model to answer this question).