The price of Stock Y, which is currently $80, can go to $120,$90, or $60 in 6 months' time. Security A pays $1 if the price of Stock Y in 6 months is $120, and zero otherwise. Security B pays $1 if the price of Stock Y in 6 months is $90, and zero otherwise. Security C pays $1 if the price of Stock Y in 6 months is $60, and zero otherwise. The prices of these securities are pA,pB, and pC, respectively. The discretely compounded risk-free interest rate is 5% per half-year (not annualized). When answering the questions below, explain your calculations. If pB=0.2/1.050.190476, what is the value of a 6-month European call on Stock Y with an exercise price of $75? (7 marks)