Q9. Magnum stock price is currently $100 and will, next year, either increase to $200 or, fall to $50. The one-year interest rate is 10% Use this information to answer the following questions: Q9a. What is the delta of a one-year call option on Magnum stock with an exercise price of $100? Q9b. Use the replicating-portfolio method to value this call. Q9c. In a risk-neutral world what is the probability that Magnum stock will rise in price? Q9d. Use the risk-neutral method to check your valuation of the Magnum option. Q9e. If someone told you that there is, actually, a 60% chance that Magnum's stock price will rise to $200, would you change your view about the value of the option? Explain why in words.