c) A stock price is currently $5. It is known that at the end of six months, it will be either $4 or $7. The risk free rate is 12% per annum with continuous compounding. Suppose that St is the stock price at the end of six months. What is the value of a derivative which pays Si' six months later? Use the no arbitrage argument. (Total Marks: 10) c) A stock price is currently $5. It is known that at the end of six months, it will be either $4 or $7. The risk free rate is 12% per annum with continuous compounding. Suppose that St is the stock price at the end of six months. What is the value of a derivative which pays Si' six months later? Use the no arbitrage argument. (Total Marks: 10)