Assume that the trader from the previous problem decides to borrow from (or invest in) the money-market the cost (or profit) from the above purchase. Suppose that at time T = 1 the value of the asset S is S(1) = 52. What is the payoff of the portfolio (both the capital gains, and what is traded in the money-market) at time T?
(a) 7.05
(b) 7.25
(c) 7.45
(d) 7.75
(e) None of the above.