Felcor stock is currently selling for $40.00 a share but is expected to either decrease to $36 or increase to $44 a share over the next year. The risk-free rate is 4 percent. What is the current value of a 1-year call option with an exercise price of $42?

		$1.57
		$1.35
		$1.18
		$1.72
		$1.06