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The current price of a non-dividend paying stock is $50. Use a two-step tree to value an American put option on the stock with a

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The current price of a non-dividend paying stock is \$50. Use a two-step tree to value an American put option on the stock with a strike price of \$48 that expires in 12 months. Each step is 6 months, the risk free rate is 5% per annum, and the volatitity is 20%. Which of the following is the option price? $1.95 $2.00 $2.10 $2.05

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