The Current Price of a Non-Dividend Paying Stock Is $30

Multiple Choice

The current price of a non-dividend paying stock is $30.Use a two-step tree to value a European call option on the stock with a strike price of $32 that expires in 6 months.Each step is 3 months,the risk free rate is 8% per annum with continuous compounding.What is the option price when u = 1.1 and d = 0.9?

A) $1.29
B) $1.49
C) $1.69
D) $1.89