Zycor stock is worth either $100 per share, $80 per share or $60 per share. Investors believe each outcome is equally likely and the current share price is equal to $80. Suppose the CEO of Zycor announces he will sell most of his holdings of the stock to diversify. Diversification will cost 10 per cent of the share price, that is, the CEO would be willing to receive 10 per cent less than the shares are worth to achieve the benefits of diversification. If investors believe the CEO knows the true value, how will the share price change if he tries to sell? Will the CEO sell at the new share price? Justify your answers.