Consider a European-style call option on a stock that is currently trading at 100. The strike price of the call is 90. Assume that, in the next 12 months, the stock price can either go up to 120 or go down to 80. Using risk-neutral valuation, calculate the current value of the option if the risk-free rate is 5 percent per annum. Use discrete compounding. Which of the following is correct?

A. 18 B. 18.5 C. 18.75 D. 19