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The current price of a non-dividend-paying stock is $40. Over the next year it is expected to rise to $45 or fall to $37. An

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The current price of a non-dividend-paying stock is $40. Over the next year it is expected to rise to $45 or fall to $37. An investor buys put options with a strike price of $39. The risk-free interest rate is 2% per annum with continuous compounding. What is the value of each option, using the one-step binomial tree model? $0.93 $1.03 $1.93 $2.33

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