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Consider a European put option on the stock XYZ, with a $40 strike and 1 year to expiration. The stock does not pay dividends, and

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Consider a European put option on the stock XYZ, with a $40 strike and 1 year to expiration. The stock does not pay dividends, and its current price is $41 The continuously compounded risk-free interest rate is 8%. The possible stock prices over 1 year is either $60 or $30. What is the put price using the binomial model? $ 4.796 $5.218 $6.353 $8.871

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