The following information is provided in the context of a two period (two three-month periods) binomial option pricing model. A stock currently trades at $35 per share, and an American put option on the stock has an exercise price of $30. You believe the stock will either increase by 10% or fall by 30% during each three-month period. The one-year risk free rate is 6%.

Find the probaility that the stock decreases each period. Round intermediate steps and your final answer to four decimals.

		.2122
		.7878
		.7128
		.2872