Exercise 13 Let = 100 be the stock price, which after time = 1 can only change up = 120 or down = 80. Compute the risk-neutral probabilities of up move and down move, assuming that the risk-free interest rate = 0,07. Price a call option with strike price 110. Price a call option with strike price 105. Price a put option with strike price 110. Price a put option with strike price 105. Exercise 14 Use replicating portfolio method to price the call and put options in the previous Exercise 13.