You are attempting to value a put option with an exercise price of $101 and one year to expiration. the underlying stock pays no dividends, its current price is $101, and you believe it has a 50% chance of increasing to $125 and a 50% chance of decreasing to $77. the risk-free rate of interest is 11%. calculate the value of a put option with exercise price $101.

Stosch company's balance sheet reported assets of $112,000, liabilities of $29,000 and common stock of $26,000 as of december 31, year 1. if retained earnings on the balance sheet as of december 31, year 2, amount to $74,000 and stosch paid a $28,000 dividend during year 2, then the amount of net income for year 2 was which of the following? a)$23,000 b) $35,000 c) $12,000 d)$42,000