Assume that the current stock price is $205. It may move up to $210 in the next three months and it may drop down to $200 in the next three months. Assume that the one month interest rate is 2% per annum and the exercise price is 205. (a) The following tree describes two possible paths for the stock price. Please fill in the contingent call option value of in the green cells (b) Describes a strategy that’s writes 100 calls and buys X shares by writing its value ,contingent on the stock price, in the blue highted cells © How many shares you should buy to achieve a certain payoff regardless whether the price move is up or down (d) Given the interest rate, find the equilibrium price of the call and explain why the call's price can't be higher or lower. ( e) Calculate the risk nuetral probability and use them to calculate the price of a call and a price of a put of three-months options on the above stock price (f) Use the probabilities in (e) to find the price of the call (g) Find the price of a put with the same exercise price and the same maturity.