A non-dividend-paying stock is currently trading at USD 40.00 and has an expected return of 12% per year. Using the Black-Scholes-Merton (BSM) model, a 1-year, European-style call option on the stock is valued at USD 1.78. The parameters used in the model are: $N(d_1 )$ = 0.29123, $N(d_2 )$ = 0.20333. The next day, the company announces that it will pay a dividend of USD 0.50 per share to holders of the stock on an ex-dividend date 1 month from now and has no further dividend payout plans for at least 1 year. This new information does not affect the current stock price, but the BSM model inputs change, so that: $N(d_1 )$ = 0.29928, $N(d_2 )$ = 0.20333. If the risk-free rate is 3% per year, what is the new BSM call price?
A. USD 1.61
B. USD 1.78
C. USD 1.95
D. USD 2.11