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Finding the price of a call option on the stock

Problem: The current price of a stock is $20. In 1 year, the price will be either $26 or $16. The annual risk-free rate is 5%. Find the price of a call option on the stock that has a strike price of $21 and that expires in 1 year.

Now Priced at $20 (50% Discount)

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## Q : What is the value of hewitt packing company bonds

Bonds of similar risk are currently selling to yield a 12 percent rate of return. What is the value of these Hewitt Packing Company bonds?