You Own One Call Option with an Exercise Price of $27.50

You own one call option with an exercise price of $27.50 on World Wide Stores stock. The stock is currently selling for $28 a share but is expected to sell for either $26 or $30 a share in one year. The risk-free rate of return is 3.65 percent and the inflation rate is 3.2 percent. What is the current call option price if the option expires one year from now?

A) $1.55
B) $1.75
C) $1.37
D) $1.46
E) $1.82