The stock price of Heavy Metal (HM) changes only once a monthe either it goes up by 20% or it falls by 16.79. its price now is $40 The interest rate is 19 per month. 1) What is the value of a one-month call option with an exercise price of $40 ? (1 mark) 2) What is the option delta? ( 1 mark) 3) Show how the payoffs of this call option can be replicated by buying HM's stock and borrowing. (1 mark) 4) What is the value of a two-month call option with an exercise price of $40 ? ( 1 mark) 5) What is the option delta of the two-month call over the first one-month period? ( 1 mark)