A market model consists of a risky stock with the initial price of $80 and a risk-free bond with the initial value of $70. Suppose that, in 6 months, the stock price will be S+=$110 or S-=$70, and the bond will be worth $78.40. Consider a call option with expiry T = 6 months and strike K = $99. (a) Find the payoff of the call option: A(S+) = $ A(S-) = $ (b) Find a portfolio replicating the contract and state: (i) The number of stock shares in the replicating portfolio = to 4 decimal places (ii) The number of bond units in the replicating portfolio = to 4 decimal places (c) The no-arbitrage value of the call option = the initial portfolio value = $ [Note: Use the rounded results from part (b) in your calculation for part (c). A market model consists of a risky stock with the initial price of $80 and a risk-free bond with the initial value of $70. Suppose that, in 6 months, the stock price will be S+=$110 or S-=$70, and the bond will be worth $78.40. Consider a call option with expiry T = 6 months and strike K = $99. (a) Find the payoff of the call option: A(S+) = $ A(S-) = $ (b) Find a portfolio replicating the contract and state: (i) The number of stock shares in the replicating portfolio = to 4 decimal places (ii) The number of bond units in the replicating portfolio = to 4 decimal places (c) The no-arbitrage value of the call option = the initial portfolio value = $ [Note: Use the rounded results from part (b) in your calculation for part (c)