Consider an option on a non-dividend paying stock where the stock price is $30, the strike price is $29, the continuously compounded risk-free rate of return is 5% per year, the continuously compounded standard deviation of its return is 25% per year and the time to maturity is 4 months.

Using the Black-Scholes model, the price of a European call on the stock is closest to what number?

$4.50

$5.50

$2.50

$3.50