Assume that a stock trading for $$30$ today will be worth either $$25$ or $$35$ in two

years. A risk$-$free asset offers an annualized $3\%$ return $($continuously compounded$)$

over that time period.

What is the price today of a two$-$year put option on this stock with a strike price of $$32?$

The maximum error is $0\mathrm{.}1.$

a$.1\mathrm{.}52$

b$.2\mathrm{.}47$

c$.1\mathrm{.}82$

d$.$ None of these answers

e$.2\mathrm{.}07$