Consider the following call option:

• The current price of the stock on which the call option is written is $32.00;
• The exercise or strike price of the call option is $30.00;
• The maturity of the call option is .25 years;
• The (annualized) variance in the returns of the stock is .16; and
• The risk-free rate of interest is 4 percent.

Use the Black-Scholes option pricing model to estimate the value of the call option.