Eagletron's current stock price is $ 10. Suppose that over the current year, the stock price will either increase by 98% or decrease by 60%. Also, the risk-free rate is 25% (EAR).

a. What is the value today of a one-year at-the-money European put option on Eagletron stock?

b. What is the value today of a one-year European put option on Eagletron stock with a strike price of $19.80?

c. Suppose the put options in parts (a) and (b) could either be exercised immediately, or in one year. What would their values be in this case?