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4. Amazon (AMZN) pays no dividend and its stock sells for $1,570/ share. A 1 -month European call option on AMZN with a strike price

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4. Amazon (AMZN) pays no dividend and its stock sells for $1,570/ share. A 1 -month European call option on AMZN with a strike price of $1,570 selis for 49 . The 1-month risk free rate is 2% on a continuously compounded basis. Each contract of a European option is for 100 shares of the underlying asset. a. What is the expected price of a 1-month European put option on AMZN? b. Consider the following two portfolios: Draw a payoff diagram for the two portfolios with respect to ST, the price of AMZN stock at maturity

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