1.suppose the stock sells at S=ksh100,its price will either increase by a factor M=1.20 to ksh120 or followed by a factor of d=0.9 to ksh90 per year end,consder a call option written on the stock with the strike price of ksh110 and a time expiration of one year,if the risk free rate is 10% find a)the replicating porfolio for the call option b)the price of the call option