Buffelhead's stock price is $235 and could halve or double in
each six-month period (equivalent to a standard deviation of 95%).
A one year call option has an exercise price of $180, 18% is
interest per year.
The option is American and that at the end of the first six
months the company pays a dividend of $24. (Thus the price at the
end of the year is either double or half the ex-dividend
price in month 6.)
Calculate the value of the Buffelhead call option.
(Do not round intermediate calculations.
Round your answer to 2 decimal places.)
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