Consider an option on a non-dividend-paying stock when the stock price is $30, the exercise price is $29, the risk-free interest rate is 4% per annum, the volatility is 20% per annum, and the time to maturity is three months. Assume that the stock is due to go ex-dividend in 1.5 months. The expected dividend is 50 cents. What is the price of the option if it is a European call?

Question 5 options:

	29.5N(0.32)-28.5N(0.22)
	28.5N(0.22)-29.5N(0.32)
	28.5N(0.32)-29.5N(0.22)
	29.5N(0.22)-28.5N(0.32)