Harbin Manufacturing has 10 million shares outstanding with a current share price of $24.07 per share. In one year, the share price is equally likely to be $30 or $20. The risk-free interest rate is 6%.

a. Using the risk-neutral probabilities, what is the value of a one-year call option on Harbin stock with a strike price of $25?

b. What is the expected return of the call option?

c. Using the risk-neutral probabilities, what is the value of a one-year put option on Harbin stock with a strike price of $25? d. What is the expected return of the put option?