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You are attempting to value a put option with an exercise price of $120 and...

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You are attempting to value a put option with an exercise price of $120 and one year to expiration. The underlying stock pays no dividends. Its current price is $120, and you believe it has a 50% chance of increasing to $135 and a 50% chance of decreasing to $85. The risk-free rate of interest is 6%, a. What will be the payoff to the put, Puif the stock goes up? Payoff b. What will be the payoff Pd. If the stock price falls? Payoff c. What is the value of the put using the risk-neutral shortcut? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Expected value

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