1. The current price of one share of XYZ stock is 100. The stock does not pay dividends. Over the next six months, the stock price will either increase by 30%, or decrease by 20%. The continuously compounded risk-free rate is 6%. (a). Determine the price of a 6-month call option with a strike price of 110 using the replicating portfolio method. (B). Determine the price of a 6-month put option with a strike price of 110.