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Assume the Black-Scholes framework. The current price of a stock is $120. A European option on the stock has a strike price of $125. The

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Assume the Black-Scholes framework. The current price of a stock is $120. A European option on the stock has a strike price of $125. The value of the option is $15.98. The elasticity of the option is -3.1559. An investor uses the stock and a risk-free asset to create a replicating portfolio to match the performance of the option. Calculate the amount that the investor invests in the riskfree asset. $34 $50 -% V O 3? U1 @@09

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