You Have Been Granted Stock Options on 100 Shares of Your

You have been granted stock options on 100 shares of your employer's stock. The stock is currently selling for $20.32, has a dividend yield of 1.4%, and a standard deviation of 23%. The option's exercise price is $20 and the time to maturity is 10 years. What is the value of your options given a risk-free rate of 5%?

A) $7.04
B) $7.53
C) $7.78
D) $7.97
E) $8.04