Suppose that a new type of investment on the security is being traded. This investment returns 50 at the end of one year if the price six months after purchasing the investment is at least 105 and the price one year after purchase is at least as much as the price was after six months. Determine the no-arbitrage cost of this investment

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of