An assets price is $29.00 and its volatility is 29% per year. A European put on the asset has an exercise price of $30.00, eighteen months until expiration, and the risk-free interest rate is 3.8% per year. According to a two-period binomial option pricing model, what is the options value?

A)

$3.07

B)

$3.54

C)

$2.53

D)

$4.78

E)

$3.48