Over the coming year, Ragwort's stock price will halve to $20 from its current level of $40 or it will rise to $80. The one-year interest rate is 9%. a. What is the delta of a one-year call option on Ragwort stock with an exercise price of $40? (Round your answer to 4 decimal places.) b. Given the delta computed in part (a), how much would be borrowed if the replicating-portfolio method was used to value the call option? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. In a risk-neutral world, what is the probability that Ragwort stock will rise in price? (Round your answer to 2 decimal places.) d. Using the risk-neutral method, what is the value of the call option? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. If someone told you that in reality there is a 60% chance that Ragwort's stock price will rise to $80, would you change your view about the value of the option? a. Delta b. Loan amount c. Probability d. Value of call e. Will you change your view about the value of the option? No 0.6667 0.39