Suppose that someone comes to you with the following proposition: I will give you $1,500 today. In return, you have to guarantee to pay me two periods from now whatever the square of the stock price of ABC is at that time (that is, if the stock price ends up at $80, you have to pay me $802 = $6400). The current price of ABC is $20. You know that each period the stock price will either increase by 100% or decrease by 50%, and that the interest rate is 25% per period. The stock pays no dividends during the two periods. Would you accept this offer? Would you trade in the underlying asset and/or cash if you decide to accept this offer? Why/why not?