Problem:

Sandy notices a dog tied to a chain behind a fence and recognizes it as belonging to an acquaintance who lives a couple of blocks away. Sandy goes to the acquaintance's house and says, "Your dog is tied up in someone's yard, and for $100 I will tell you where."The dog's owner says, "No way! I can't believe you won't simply tell me where the dog is!"The dog's owner drives around the neighborhood and finds the dog and retrieves it. The next day Sandy notices an advertisement in the paper where the owner offered a reward of $200 for information leading to the return of her dog.

Required:

Sandy is:

i. entitled to $100 because she made a counteroffer to the $200 reward offer, thereby lowering the amount she can claim

ii. entitled to $200 solely because she gave the dog's owner information leading to the return of the dog

iii. entitled to the $200 because she offered to pay money and the reward offer was outstanding

iv. not entitled to any money because she rejected the original offer and the dog's owner did not accept Sandy's counteroffer

v. not entitled to any money because Sandy did not have prior knowledge to any reward

Provide explanation of the given question.