You use the standard binomial model and the following information to construct a one-period binomial tree for modeling the price movements of a nondividend-paying stock. (The tree is sometimes called a forward tree.) The period is six months. The initial stock price is $75. The stock's volatility is 25%. The continuously compounded risk-free interest rate is 8%. At the beginning of the period, an investor owns an American put option on the stock. The option expires at the end of the period. Determine the smallest integer-valued strike price for which an investor will exercise the put option at the beginning of the period. A) 85 B) 86 OC) 87 D) 88 E) 89 You use the standard binomial model and the following information to construct a one-period binomial tree for modeling the price movements of a nondividend-paying stock. (The tree is sometimes called a forward tree.) The period is six months. The initial stock price is $75. The stock's volatility is 25%. The continuously compounded risk-free interest rate is 8%. At the beginning of the period, an investor owns an American put option on the stock. The option expires at the end of the period. Determine the smallest integer-valued strike price for which an investor will exercise the put option at the beginning of the period. A) 85 B) 86 OC) 87 D) 88 E) 89