Suppose that a stock price is currently 52 dollars, and it is known that 7 months from now, the price will be either 17 percent higher or 17 percent lower. Find the value of a European put option on the stock that expires 7 months from now, and has a strike price of 54 dollars. Assume that no arbitrage opportunities exist, and a risk-free interest rate of 3 percent. (Note: you should have at least 3 decimal places in your answer.)
Answer = dollars.