A European call option for the purchase of a stock in period 1 at a strike price K =$40 is traded at a price go in period 0 The stock price at t = 0 is qo= $60. The stock price in period 1 can be one of two values: q] E {$80,$30}. There is a risk free bond with the face value $1 and return rate r = 0.002 per period. {a} Show that markets are complete by deriving the unique risk-neutral probability measure. {b} Determine the hedging (that is replicating portfolio} Ear the call option. {c} Give a formal denition of an orbinuge 'ee price system and derive the arbitrage free price of the call option. {d} Show that for any other price of the call option1 the investor can make money}.r out of nothing