(e)Suppose there is a bet-on agreement on the performance of Pop Quant traded on the market. This bet-on agreement is nothing but a derivative (contract) which entitles the buyer the right: On maturity (one year from today), if the stock price of PopQuant is greater than or equal to 35, the buyer could get $12/contract from the counterparty (the seller) of the agreement but only $2 otherwise. Assume the risk-free interest rate is 1% and the fair price of the bet-on agreement is$8/contract as observed on the market. What is the risk-neutral probability today that the stock price of PopQuant will be not less than $35 one year