Please show all work so I can learn. Thanks!

For a nondividend-paying stock, you are given:

i) The current stock price is 100

ii) At the end of one year the stock price will either be 100u or 92

iii) The continuously compounded risk-free interest rate is 0.05

iv) The price of a one-year at-the-money call option on the stock is 1.78

Calculate u

___________________________

A) 1.05

B) 1.15

C) 1.25

D) 1.35

E) No such u exists