Given that S= X = $30, r_f = 2% per year, and time to expiration is 3 months, find the value of the unknowns if S_{up, 3} = $36, and S_down,3 = $28. Use the table below for help. Transact the lowest integer number of shares or options.

Initial transactions	CF0	CF3, mths
		Sup,3mths = $36	Sdown,3mths = $28
A		w
B
S =		z

What is the price of a call option using the above payoff table? Use discrete discounting, not continuous discounting.

Group of answer choices

A. $1.71

B. $1.60

C. $1.91

D. $1.82