Consider a chooser option on a stock s whose current price is $100 per share. assume that we are using our usual notation, i. e., let vch (0,t, t, k) denote the time-0 price of a chooser option with choice date t", exercise date t and strike price k. then, the following inequality holds: (a) vch (0, t',t, k) s vp(0, t, k) (b) vch (0, ,t, k) s vo(0, t, k) (c) max(vr(0,t, k), vc(0, t, k)) vch(0,t',t, k) (d) vch (o, t',t, k) < max(vp (0, t, k), vc(0, t, k)) (e) none of the above

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?