The stock price of Heavy Metal (HM) changes only once a month: either it goes up by 20% or it falls by 16.7%. Its price now is $40. The interest rate is 12.7% per year, or about 1% per month. What is the value of a one-month call option with an exercise price of $40? What is the option delta? Show how the payoffs of this call option can be replicated by buying HM's stock and borrowing. What is the value of a two-month call option with an exercise price of $40? What is the option delta of the two-month call over the first one-month period