The current price of KD Industries' stock is $20. In the next year the stock price will either go up by 20% or go down by 20%. KD pays no dividends. The one year risk-free rate is 5% and will remain constant. 1) Using the binomial pricing model, the calculated price of a one-year call option on KD stock with a strike price of $20 is closest to: A) $2.40 B) $2.00 C) $2.15 D) $1.45