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20) Suppose a non-dividend paying stock now sells at $100, and its price will be either $120 or $90 one year later. The risk-free rate

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20) Suppose a non-dividend paying stock now sells at $100, and its price will be either $120 or $90 one year later. The risk-free rate is 9.531% per annum with continuous compounding (or equivalently 10% with annual compounding (or e0.09531x1=1.10-1=10%). Consider a one-year European put option on the stock with a strike price of $110. What are the payoffs of this put option at maturity?

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