Consider a corporation that is worth 150 (million) in the Up-state and 50 (million) in the Down-state. Suppose the firm owes creditors a total of 80 (million) to be paid at date 1.

Suppose next that the corporation has no debt: it is all-equity financed. Suppose there are 1 million shares outstanding.

g) Consider a put-option that allows the owner to sell one share in the corporation. The strike price is 80 and the option can only be exercised at date 1. What is the date 0 value of the put option?