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The current price of KongZhoung Corp stock (non-dividend-paying) is $8.00. Over the next year it is expected to rise to $8.50 or fall to $7.50.

The current price of KongZhoung Corp stock (non-dividend-paying) is $8.00. Over the next year it is expected to rise to $8.50 or fall to $7.50. An investor buys put options with a strike price of $8.20. What is the value of each option? The risk-free interest rate is 2% per annum with continuous compounding. (Show Work)

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