14. The price of a non-dividend paying stock is $38 and the premium of a six-month European put option on the stock with a strike price of $40 is $3.60. The risk-free rate is 2% per year. a The premium of a six-month European call option on the stock with a strike price of $40 is: a A) $1.80 B) $2.00 C) $3.60 D) $4.00 E) Cannot be determined using the data provided