I'm publishing my first short story, but I don't want to put a price on it. I want it to be free, but there doesn't appear to be a free option. Also in the agreement it says that the price cannot be more than it is offered elsewhere. I plan to make the story available for free online and wherever else I can place it.
You can't do free e-books through PubIt!. The price of PubIt! e-books must be between $0.99 and $199.99. See the PubIt! Pricing Policy: http://pubit.barnesandnoble.com/pubit_app/bn?t=support
If you want your e-books available on B&N (and elsewhere) for free, I suggest that you go through Smashwords.