Question: You are attempting to value a put option with an exercise price of $109 and one year to expiration. The underlying stock is currently selling

You are attempting to value a put option with an exercise

You are attempting to value a put option with an exercise price of $109 and one year to expiration. The underlying stock is currently selling for $109. Over the next year, the stock price will increase by 7% or decrease by 7%. The T-bill rate is 4%. Calculate the put option's value using the two-state stock price model. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Put option's value

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