You are attempting to value a put option with an exercise price of $130 and one year to expiration. The underlying stock pays no dividends, its current price is $130, and you believe it has a 50% chance of increasing to $160 and a 50% chance of decreasing to $110. The risk-free rate of interest is 14%.

a. What will be the payoff to the put, P_u, if the stock goes up?

b. What will be the payoff, P_d, if the stock price falls?

c. What is the weighted average value of the pay off?