Suppose that Alphabet's stock closed at $1,300 today. Six months from now Alphabet's stock price will be either $1,400 or $1,200. Using the binomial model, estimate the value of a European call option on Alphabet's stock with an exercise price of $1,340 that expires six months from now. The continuously compounded risk-free return is 3%. Please round your answer to the nearest cent (e.g., $1.23).

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