A stock price is $50 today. The 1 year rf rate is 10%. There's a 10% probability the stock will be $25 and a 90% probability the stock will be $75 next year.

What is the current price of a European put option on the stock in which the option expires in one year with strike price $50?

What is the expected return to holding the stock for one year? What about the expected return to holding the option for one year? Is this different from the expected return to holding the stock, and why or why not?