The current price of a stock is $50 and in each 1 month period it will either increase by 10% or fall by 10%. The yield curve is flat and the short rate is constant and equals 0% (c.c.). (a) Use replicating portfolios to calculate the price of a European call option with a strike price of $55 and 2 months to maturity. (b) Use "risk neutral probabilities to compute the price of a European at-the-money call option with 4 months to maturity? (c) Use risk neutral probabilities to compute the price of a European put option with a strike price of $45 and 4 months to maturity. The current price of a stock is $50 and in each 1 month period it will either increase by 10% or fall by 10%. The yield curve is flat and the short rate is constant and equals 0% (c.c.). (a) Use replicating portfolios to calculate the price of a European call option with a strike price of $55 and 2 months to maturity. (b) Use "risk neutral probabilities to compute the price of a European at-the-money call option with 4 months to maturity? (c) Use risk neutral probabilities to compute the price of a European put option with a strike price of $45 and 4 months to maturity