Problem 4 (5 marks) Your firm manufactures vitamin supplements and is well known for quality of the products. A large pharmaceutical company, Slizer Ltd., has offered to buy your firm. Slizer's stock presently trade for $70 per share. If you accept the offer, you will receive 500,000 shares of Slizer. You are free to sell these shares in the stock market at any time. Further, Slizer has also agreed to buy these shares from you at the end of next year for $70 per share if you want. The one-year risk-free interest rate is 5% and the volatility of Slizer's stock is 20%. Slizer does not pay dividends. What is the value of the offer?