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Today's price of Shake Shack (SHAK) is $40. SHAK does not pay dividends. One year from today, there are two possible states. In the u

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Today's price of Shake Shack (SHAK) is $40. SHAK does not pay dividends. One year from today, there are two possible states. In the u state, the price of SHAK is $80. In the d state, the price of SHAK is $20. The c.c. risk-free interest rate is two percent. Assume there is no arbitrage. A root derivative has payoffs X -VS, and Xd =VS. What is the price of the root derivative

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