Suppose company A stock is last time traded at 43.26$, and our analysis shows that in one year from now, its price would either increase or decrease by 35%. (i. e. d=0.65, u=1.35) Assume that risk-free rate is 1%
and the company pays no dividend in this time period.

1) What would be the payoff for a European Put Option written on Company A equity, with time to maturity
of 1 year, and strike price of 35$? Calculate the payoff for the up and down scenarios

You are a team of marketing consultants. it is 2008 and the great recession has struck. one of your clients is whole foods market (sometimes known as whole paycheck). wfm has come to you and asked for strategic advice on how to adapt their product and pricing strategies in light of the economic downturn: 1. advise wfm on the various approaches that could be taken to reducing price. be sure to consider potential psychological impact of price reductions on wfm consumers. 2. based on the options outlined in part 1, recommend an approach and support with marketing theory.