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Question 3 2.5 pts Today's price of Capital One Financial Corporation (COF) is $50. COF does not pay dividends. One year from today, there are

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Question 3 2.5 pts Today's price of Capital One Financial Corporation (COF) is $50. COF does not pay dividends. One year from today, there are two possible states. In the u state, the price of COF is $100. In the d state, the price of COF is $25. The c.c.risk- free interest rate is zero percent. Assume there is no arbitrage. A power derivative has payoffs X = 5,2 and X = 5,? What is the price of a power derivative on COF? Question 4 2.5 pts A fraction derivative has payoffs Xu = S/10 and Xd=5g/10. What is the price of a fraction derivative on COF

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