2 period binomial American Put Value

[quartermile]

Hi AFers,

The text in the CFA answer would suggest [B] is correct, but then they use a different number in their formula to result in [A] being correct. My working is included in the image below (the inputs from the question (in blue) are confirmed correct). Any guidance would be much appreciated. Thank you.

[mohit.sidana]

I think there is a mistake in curriculum because to discount we use higher of discounted or exercise today value. In this curriculum has used 8.43 instead of using 9.60