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Stock price = 30. In 2 months, two months the price will be either 33 or 27. The risk-free interest rate is 10% p.a on

Stock price = 30. In 2 months, two months the price will be either 33 or 27. The risk-free interest rate is 10% p.a on a continuous compounding basis.

What will be the value of a 2-month European put option with a strike price of 31? (5 marks)

Please provide a step by step explanation as I would like to fully understand and not just copy the answer. Thank you :)

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