A market currently consists of a claim (i.e. contract), a risky $140 stock, and a $70 risk-free bond. Suppose that in one year's time: * The claim will have a payoff of either C+ = $65 or C = $35. * The stock's price will be either S+ =$170 or S=$110. * The bond will be worth $79.80. (a) Determine the risk-neutral probability of the stock price increasing in value in one year's time. % to 2 decimal places (b) Use expectation to find the no-arbitrage price (or fair price) of the claim. Co = $ (c) Suppose the market price of the claim is mispriced at C = $89.01. If you short sell 4 claims, then you will be able to buy 2 bonds and where necessary) and the portfolio will cost nothing to construct. After 1 year, the value of the portfolio will be: II = $ II = $ if the market is in the "up" state if the market is in the "down" state stocks (to 4 decimals