Please check the two questions and answer the last one. Thank you.

The Black-Scholes option pricing model The Black-Scholes option pricing model (OPM) was developed in 1973. The creation of the Black-Scholes OPM played a significant role in the rapid growth of options trading. Under the assumptions used by Fischer Black and Myron Scholes to derive the Black-Scholes model, if the option price is different from the price found using the Black-Scholes model, arbitrage opportunities will exist. According to the Black-Scholes Option Pricing Model, if the exercise price, X, increases, the value of the call option decreases. Big Walnut Nut Company has a current stock price of $32.00. A call option on this stock has an exercise price of $32.00 and 0.49 year to maturity. The variance of the stock price is 0.04, and the risk-free rate is 7%. You calculate di to be 0.32 and N(0.32) to be 0.6255. Therefore, d2 will be 0.18 and N(0.18) will be 0.5714. Using the Black-Scholes Option Pricing Model, what is the value of the option? $2.231 $2.348 $1.878 $2.113