Two stable dynamical states of trajectories of an underdamped particle, under appropriate conditions, appear naturally in a sinusoidal potential when driven by a low amplitude biharmonic external field. These states are quite stable at low temperatures but make transitions between them as the temperature is raised. The proper choice of the biharmonic drive makes it possible for the system to show, at the same time, both the phenomena of stochastic resonance and ratchet effect. Ratchet effect, in this case, a consequence of the biharmonic drive, is obtained over a large domain of parameter space. However, stochastic resonance can be obtained only over a restricted (sub)domain of parameter space and owes its existence largely to the existence of the two dynamical states.