Suppose Kate Nine stock is selling for $41 per share. Puts and calls with an exercise price of $40 are available on Kate Nine. The risk risk-free rate is 8%. The time to maturity of the puts and calls is 6 months (i.e., t = .50). The volatility of Kate Nines stock returns is 30% (i.e., = .30). Use the Black-Scholes equation to determine the price of the put.

Answer choices:

$4.79

$2.57

$2.22

$4.38

$3.29