2. The spot price of a non-dividend paying stock is recorded as 180 at the close of the day. You estimate that this price is equally likely to go up by 11.1% or go down by 10% every two months and observe that the continuously compounded annual risk-free rate is 20% per year across all maturities. Use a three-step binomial tree and the risk-neutral valuation approach to compute the theoretical value of a European put option written on this stock that has a strike price of 175 and exactly six months until its expiration date