- .... One-Period Model - Option Pricing Mark Consider the following discrete time one-period market model. The interest rate is zero. The stock price is given by So = 10 and S1 is a random variable taking two possible values S1 = 8 and S1 = 12. Consider a call option expires at time T' = 1 with strike price K = 9. If you are replicating one unit of this option with a replicating portfolio, how many units of the stock should you hold? Select one: O a. -1/3 3 of 25 Ob. - 1/4 O c. 1/4 O d. 3/4 Oe. 1/3 Of. 3 Clear my choice Report question issue Notes