A stock with a current price of $18 will either move up by a factor of 1.2 or down by a factor of 0.9 each period over the next two periods. The risk-free rate of interest is 4.5 percent. What is the current value of a call option with a strike price of $20?

A) $1.27

B) $1.08

C) $1.17

D) $1.21

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