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The current price of Estelle Corporation stock is $ 2 2 . 0 0 . In each of the next two years, this stock price

The current price of Estelle Corporation stock is $22.00. In each of the next two years, this stock price will either go
up by 23% or go down by 23%. The stock pays no dividends. The one-year risk-free interest rate is 6.0% and will
remain constant. Using the Binomial Model, calculate the price of a one-year call option on Estelle stock with a strike
price of $22.00.
The price of the one-year call option is $2.98.(Round to to the nearest cent.)
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