4. Amazon (AMZN) pays no dividend and its stock sells for $1,570/share. A 1-month European cal option on AMZN with a strike price of $1,570 sells 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 underlyingasset a. What is the expected price of a 1-month European put option on AMZN? b. Consider the following two portfolios: Portfolio A Borrow $157,000 at risk-freeLong 1 contract of AMZN rate and buy 100 shares of AMZN Portfolio B European call option expiring in 1-month at a strike price of 1,25900 And, short1 contract of AMZN European put option expiring in 1-month at a strike price of 1,570 Draw a payoff diagram for the two portfolios with respect to S, the price of AMZN stock at maturity