Use the Following Data for a Single-Period Binomial Model to Answer

Use the following data for a single-period binomial model to answer the questions that follow.
- The stock's price S is $50.After three months,it either goes up by the factor U = 1.16038286 or it goes down by the factor D = 0.85963276.
- Options mature after T =0 0.25 years.
- The continuously compounded risk-free interest rate r is 4 percent per year.
-Given the above data,the value of a call option with a strike price of $45 is:

A) $1.65
B) $3.45
C) $6.45
D) $7.08
E) None of these answers are correct.