An independent film maker is considering producing a new movie. The initial cost for

making this movie will be $$20$ million today. Once the movie is completed, in one year,

the movie will be sold to a major studio for $$25$ million. Rather than paying for the $$20$

million investment entirely using its own cash, the film maker is considering raising

additional funds by issuing a security that will pay investors $$11$ million in one year.

Suppose the risk$-$free rate is $10\%.$