Suppose that a stock is currently trading at $60 per share and that the stock price can either go up by 25% or down by 20% over the next year. The probability of prices going up is 75% and the probability of going down is 25%. The annual risk-free rate is 4%. Suppose that we are interested in pricing an American put option on this stock. The option has a strike price of $56, and its maturity date is exactly two years from now. What is the price of the option at time zero?

Group of answer choices

3.54

7.30

8.32

11.77

5.21