A start-up company called Thunderbird is negotiating its Series A term sheet with a venture capital firm called Gold Capital. Gold Capital is willing to invest $1 million for 20% of shares of Thunderbird.

Two years prior to the Series A round, the company raised an unpriced seed round. It signed a convertible note with a venture capital firm called First Capital. The principle amount of note is $100,000 with a 5% non-cumulative interest rate. The conversion price for the convertible note will be lower of the price calculated as i) (Option 1) the cash price paid per share for equity securities by the investors in the qualified financing round multiplied by 0.8, and ii) (Option 2) the quotient resulting from dividing $3,200,000 by the number of outstanding shares of common stock of the company immediately prior to the qualified financing round.

Prior to the seed round financing, founders and management team hold 1 million shares. What will be the conversion price of the convertible note?