The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European put option on the stock with a strike price of $32 that expires in 6 months. Each step is 12 months, the risk free rate is 8% per year with annual compounding, and u = 1.1 and d = 0.9.

$0.42

$2.98

$0.22

$2.84