Assume the following inputs for a call option: (1) current stock price is $28, (2) strike price is $32, (3) time to expiration is 2 months, (4) annualized risk-free rate is 6%, and (5) variance of stock return is 0.21.

Use the Black-Scholes model to find the price for the call option.

The current price of a stock is $22. In 1 year, the price will be either $24 or $16. The annual risk-free rate is 6%.

Find the price of a call option on the stock that has a strike price is of $23 and that expires in 1 year. (Hint: Use daily compounding.) Assume 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.