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You wish to price a 2-year call option on a stock by modeling the stock price as changing six times (once every 4 months) over the option's life

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You wish to price a 2-year call option on a stock by modeling the stock price as changing six times (once every 4 months) over the option's life. If the risk-free rate is 4% compounded annually and the stock will not pay dividends over the next two years, an appropriate R in the formula (R-d)/(u-d) is:

a) .013333

b) .080000

c) 1.00656

d) 1.01316

e) 1.04000

f) 1.08160