A European call option with a strike price of $20.40 which expires in five months is written over a stock that is currently priced at $20.00. It is known that at the end of five months the stock will be either worth $17 or $23. The risk-free interest rate is 1% p.a. (continuously compounded). i) Determine the composition of the riskless portfolio. ii) Use no-arbitrage arguments to determine the value of the call option. ii) If instead, risk-neutrality was assumed, what is the probability of a share price increase?