For a two-period binomial model for stock prices, you are given:

(i) Each period is 6 months.

(ii) The current price for a nondividend-paying stock is $70.00.

(iii) u = 1.181, where u is one plus the rate of capital gain on the stock per period if the price goes up.

(iv) d = 0.890, where d is one plus the rate of capital loss on the stock per period if the price goes down.

(v) The continuously compounded risk-free interest rate is 5%.

Calculate the current price of a one-year American put option on the stock with a strike price of $80.00.

(A) $9.75

(B) $10.15

(C) $10.35

(D) $10.75

(E) $11.05