You own a small networking startup. You have just received an offer to buy your firm from a large, publicly traded firm,

$JCH$ Systems. Under the terms of the offer, you will receive $1$ million shares of JCH$.$ JCH stock currently trades for

$$24\mathrm{.}67$ per share. You can sell the shares of $JCH$ that you will receive in the market at any time. But as part of the offer,

$JCH$ also agrees that at the end of one year, it will buy the shares back from you for $$24\mathrm{.}67$ per share if you desire.

Suppose the current one$-$year risk$-$free rate is $6\mathrm{.}27\%,$ the volatility of $JCH$ stock is $30\mathrm{.}4\%,$ and JCH does not pay

dividends. Round all intermediate values to five decimal places as needed.

a$.$ Is this offer worth more than $$24\mathrm{.}67$ million? Explain.

b$.$ What is the value of the offer?

a$.$ Is this offer worth more than $$24\mathrm{.}67$ million? Explain. $($Select the best choice below.$)$

A$.$ The offer is worth more than $$24\mathrm{.}67$ million because of the put option.

B$.$ The offer is worth exactly $$24\mathrm{.}67$ million because that is the price of the shares today.

C$.$ The offer is worth less than $$24\mathrm{.}67$ million because of the put option.

D$.$ The offer is worth more than $$24\mathrm{.}67$ million because you might be able to sell the shares at a higher price.