In a complete and efficient market, you have two assets, a treasury bill (risk-free) with a 2% discount rate that expires in one year and an asset whose expected value in one year is 1,400 if the economy grows and $ 700 if the economy falls. If the price of this last asset is 1000, what should be the price of an asset that in a year will pay a dollar only if the economy grows (it will pay 0 if the economy falls).

a) 0.7

b)0.45

c) 0.5

i kown what your thinking, use( (1+r) -D)//U-D) then compute the average like its a call tree. I did it but I had no answer.