Part 2 1) Calculate Steve's expected value for this deal. Ignore tax effects and the time value of money. Solution To sell Southern Electronics to Banana for $530,000 plus 280,000 shares of Banana stock and a put optionthat will allow him to sell them at $30 a share. Steve's expected value for the deal=$530,000+280,000*($30)=$8.93 million. Part 2 1) Calculate Steve's expected value for this deal. Ignore tax effects and the time value of money. Solution To sell Southern Electronics to Banana for $530,000 plus 280,000 shares of Banana stock and a put optionthat will allow him to sell them at $30 a share. Steve's expected value for the deal=$530,000+280,000*($30)=$8.93 million