The stock of Square Company is currently trading at a market price of $47.04 per share. During the next year, the price of Square's stock will either increase ( uptick) to $72 or decrease (downtick) to $32. The risk free rate of interest is 2.02% per year compounded continously, so that the PV of a risk free dollar to be received in 1 year is $0.9800. Assuming that Square is not expected to pay a dividend during the next two years, and that the risk-neutral probability of an uptick in the stock price does not change over time, determine

a. the risk - neutral probability of an uptick in the stock price

b. the value of a put option with a $40 strike price having one year to expiration