Suppose a Stock Is Currently Trading for $12,and in One

Multiple Choice

Suppose a stock is currently trading for $12,and in one period it will either increase to $15 or decrease to $8.If the one-period risk-free rate is 4%,what is the price of a European put option that expires in one period and has an exercise price of $10?

A) $0.96
B) $1.92
C) $1.00
D) $2.00
E) $0.69