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The risk-free rate is 8% per annum with continuous compounding. The price of stock CPU is $30. CPU currently does not pay a dividend. You

The risk-free rate is 8% per annum with continuous compounding. The price of stock CPU is $30. CPU currently does not pay a dividend. You use a two-step tree to price a European put on CPU with a strike price of $32. The option expires in six months. If you estimate that u=1.1 and d=0.9, what is the price of your put?

A.$1.50 B.$2.24 C.$1.88 D.$2.56

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