270 20. BINOMIAL TREESSTOCK, ONE PERIOD 20.8. [2-F01:40] A non-dividend paying company stock is currently trading at 50. Over the next year, this stock will either increase in value by 10% or decrease by x%. The effective annual risk-free interest rate is 4%. The value of a one-year European put option for this stock at an exercise price of 50 is 1.28. Calculate x. (A) 0 (B) 2 (C) 4 (D) 6 (E) 8