You Own One Call Option with an Exercise Price of $40

You own one call option with an exercise price of $40 on S'more Good stock.The stock is currently selling for $41 a share but is expected to sell for either $37 or $43 a share in one year.The risk-free rate of return is 4.25 percent and the inflation rate is 3.6 percent.What is the current call option price if the option expires one year from now?

A) $0.55
B) $0.69
C) $1.37
D) $2.43
E) $2.75