Hopkins Pharmaceuticals stock is currently priced at $40 per share. Six months from now its price will be either $44.21 or $36.19. If the price rises to $44.21, then six months later the price will be either $48.86 or $40. If, however, the price initially falls to $36.19, then six months later the price will be either $40 or $32.75.The risk-free rate (continuously compounded) is 3.05% for each six-month period. Use the binomial option pricing model to determine the fair value of a one-year call option on Hopkins stock.