Consider a stock with a current price of $1 [ll'l that will he worth either $125 or $30 in 1 year. Assume rr= 2% {annual compounding). You have invented a new derivative security called a \"square"1 whose payoff in 1 year is the square of the stock price1 i.e., payoff = PF. a. What are the payoffs to this security in the two states of the world at time 1'? (I point each) b. What portfolio of stock (number of shares} and borrowing {dollar value of initial positiom with positive numbers indicating borrowing] will rcplicate these payoffs? {2 points each] c. What is the current value of this security, i.e., the value of this replicating portfolio? (2 Paints}