The risk-free rate of interest is 9. calculate the call, Ask an Expert

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You are attempting to value a call option with an exercise price of $108 and 1 year to expiration. The underlying stock pays no dividends, its current price is $108, and you believe it has a 50% chance of increasing to $145 and a 50% chance of decreasing to $71. The risk-free rate of interest is 9%. find out the call option's value using the two-state stock price model. (Round your answer to 3 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

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