Suppose that shares of Reena's Baklava are currently priced at $50 a share, and in one period, they will be worth either $45 or $55. The stock does not pay dividends. The riskless interest rate over the period is 4 percent. All the call and put options below are European options. Each of them is on one share of Reena's Baklava and has one period to expiration. QUESTION 1 (8 points, 2 points each part) There is European CALL options with an exercise price of $50. a) Calculate the option's delta, what is a riskless portfolio and show that it is riskless. b) Calculate the current equilibrium call price, current intrinsic value, and current time value. c) Suppose that the current price of the option is $2.90. Is there a profitable arbitrage? If yes, design the arbitrage and calculate the profits. d) Suppose that the current price of the option is $4.20. Is there a profitable arbitrage? If yes, design the arbitrage and calculate the profits.