A stocks price is $100. After 1 year, it either goes up to $121 or down to $89. The money market account has dollar return 1 + R = 1.05. An option with strike price K = 7 matures after 1 year. Consider the following exotic option whose payoff at maturity is given by the square root of the stock price less the strike price if is has a positive value, zero otherwise: max( S(T ) K, 0) Assuming that the strike price K is $7, determine the value of this exotic option under the assumption of no-arbitrage.